5) You are looking to buy a $1 million home and you would like to put $100,000 down and borrow the rest. You have two offers from competing banks. The first bank offers you a $900,000 first mortgage, with a rate of 3.75%, 30 year amortization and 2% origination fee. The second offer consists of an $800,000 mortgage at 3%, 30 year amortization, with 1% origination fee and a home equity loan of $100,000 at a rate of 7.5%, 30 year amortization, 2% origination fee. Which offer would you take? Hint: Take the offer with the lowest effective cost of borrowing