Question $13$

$1$ pts

A borrower is purchasing a property for $$250,000$ and can choose between two possible loan alternatives. The first is a $90\%$ loan for $25$ years at $9\%$ interest and $1$ point and the second is a $95\%$ loan for $25$ years at $9\mathrm{.}25\%$ interest and $1$ point. Assuming the loan will be repaid in $5$ years, what is the incremental cost of borrowing the extra money?

$13\mathrm{.}02\%$

$13\mathrm{.}95\%$

$12\mathrm{.}09\%$

$14\mathrm{.}42\%$