3.5 pts Question 10 A homeowner bought a house for $300.000. He has $50,000 cash for down payment. He can get loan package with a $220,000 loan for 8% and a second mortgage of 530,000 loan for 12%, first loan is 20 year. All loans require monthly payments and are fully amortizing. Assuming the homeowner will own the property for the full loan term and the second mortgage has a 5-year term, what is the effective cost? 8.53% 3.179 9.01 8.01 Previous Next