2. An investor had $60,000 to invest in a $280,000 property. He can obtain either a $220,000 loan at 9.5% for 20 years or a $180,000 loan at 9% for 20 years and a second mortgage for $40,000 at 13% for 20 years. All loans require monthly payments and are fully amortizing.

1. which alternative should the borrower choose, assuming he will own the property for the full loan term.
2. would your answer change if the borrower plans to own the property only five years?