Question: Question 20 A borrower bought a house for $300,000, he can obtain an 80% loan with a 20-year fully amortizing. 7% interest rate and monthly

Question 20 A borrower bought a house for $300,000, he can obtain an 80% loan with a 20-year fully amortizing. 7% interest rate and monthly payment. Alternatively, he could get a 30-year fully amortizing 90% loan at 9%. What is the incremental cost of borrowing the additional fund? 16.24% 15.17% 17.52% 16.98% Question 20 A borrower bought a house for $300,000, he can obtain an 80% loan with a 20-year fully amortizing. 7% interest rate and monthly payment. Alternatively, he could get a 30-year fully amortizing 90% loan at 9%. What is the incremental cost of borrowing the additional fund? 16.24% 15.17% 17.52% 16.98%

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