A borrower hopes to get a $40,000 home loan. He/she is choosing from two loans with a $10,000 difference on loan amount. The borrower finds that the incremental cost of borrowing the extra $10,000 is 7%. A second mortgage would cost 6.5% to borrow the extra $10,000. Which one is a better decision? a. to get the loan with smaller loan amount plus a second mortgage b. to get the loan with larger loan amount