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A property costs $225,000. A borrower can obtain an 80% loan with an 10% interest rate and monthly payments. The loan is to be fully

A property costs $225,000. A borrower can obtain an 80% loan with an 10% interest rate and monthly payments. The loan is to be fully amortized over 20 years. Alternatively he could obtain a 90% loan at an 10.25% interest rate with the same loan term. The borrower plans to own the property for the entire loan term. What is the incremental cost of borrowing the additional funds?

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