You are looking to purchase a house for $500,000 with either a 70% or 80% LTV...

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You are looking to purchase a house for $500,000 with either a 70% or 80% LTV loan (both 30-year mortgages). The 70% LTV loan has a rate of 5.25% and the 80% LTV loan has a rate of 5.375%. The 70% LTV doesn't require any points at closing and the 80% LTV loan requires 0.50 points. What the marginal borrowing cost of the 80% LTV loan in relation to the 70% LTV loan if you plan to pay either loan over the full 30-year term? You are looking to purchase a house for $500,000 with either a 70% or 80% LTV loan (both 30-year mortgages). The 70% LTV loan has a rate of 5.25% and the 80% LTV loan has a rate of 5.375%. The 70% LTV doesn't require any points at closing and the 80% LTV loan requires 0.50 points. What the marginal borrowing cost of the 80% LTV loan in relation to the 70% LTV loan if you plan to pay either loan over the full 30-year term?

Answer rating: 100% (QA)

70 LTV loan Loan amount 500000 x 07 350000 Interest rate 525 M... View the full answer