Question: Question 6 1 pts A borrower finds that the incremental cost of borrowing associated with moving from an 80% LTV loan to an 85% LTV

Question 6 1 pts A borrower finds that the incremental cost

Question 6 1 pts A borrower finds that the incremental cost of borrowing associated with moving from an 80% LTV loan to an 85% LTV loan is 14%. A second loan is available for 5% of the purchase price of the house and the rate on this loan is 15% with no closing costs. Which of the following statements is correct? The single loan at 85% LTV is cheaper than using an 80% LTV loan in combination with a 5% second mortgage. The single loan at 85% LTV is more expensive than using an 80% LTV loan in combination with a 5% second mortgage

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