A purchaser of a $250,000 house is comparing two fixed rate, 25 -year loan alternatives. Option 1: 80% LTV at 8% - monthly payments of $1,544 Option 2: 70% LTV at 7% - monthly payments of $1,237 What is the incremental cost of borrowing the extra money? 1.2% 13.5\% 14.3% 10.2% Question 22 A borrower is evaluating two loans with 30 year maturities and 3 points on a $200,000 property: Option 1: 80% LTV at 9%-monthly payments of $1,287 Option 2: 70\% LTV at 7\% - monthly payments of $931 What is the incremental borrowing cost for the additional proceeds? 23.3% 1.8% 1.9% 22.0%