A borrower is purchasing a property and can choose between two possible loan alternatives. The...
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A borrower is purchasing a property and can choose between two possible loan alternatives. The first is a 85% LTV for 25 years at 9% interest and 1 point and the second is a 95% LTV for 25 years at 9.35% interest and 0 point. Assuming the loan will be repaid in 5 years, what is the incremental cost of borrowing the extra 10% price? 1242% 11.67% 13.39% 10.08% A borrower is purchasing a property and can choose between two possible loan alternatives. The first is a 85% LTV for 25 years at 9% interest and 1 point and the second is a 95% LTV for 25 years at 9.35% interest and 0 point. Assuming the loan will be repaid in 5 years, what is the incremental cost of borrowing the extra 10% price? 1242% 11.67% 13.39% 10.08%
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