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A borrower is purchasing a property for $ 1 8 0 , 0 0 0 and can choose between two possible loan alternatives. The first

A borrower is purchasing a property for $180,000 and can choose between two possible loan alternatives. The first is a 90% LTV loan for 25 years at an annual rate of 9% and 1 point and the second is a 95% loan for 25 years at 9.25% interest and 1 point. Both loans are for monthly payments. Assuming the loan will be held for five years, what is the annual incremental cost of borrowing the extra money?
1427%
13.66%
13.50%
13.95%
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