Urgent Please.

1. A borrower is purchasing a property for $500,000 and can choose between two possible loan alternatives. The first is a 90% loan for 25 years at 4% interest with monthly payments of $2,375.27 and 1 point charged. The second mortgage is a 95% loan for 25 years at 5% interest with monthly payments of $2,776.80 and 1 point charged. Assuming the loan will be held to maturity, what is the incremental cost of borrowing the extra money?

19.31%

9.50%

19.10%

2. When purchasing a $100,000 house, a borrower is comparing two loan alternatives. The first loan is an 80% loan at 4% with monthly payments of $591.75 for 15 years. The second loan is 90% loan at 5% with monthly payments of $526.13 over 25 years. What is the incremental cost of borrowing the extra money assuming the loan will be held for the full term?

7.20%

6.50%

13.70%

13.21%