Assume you want to borrow $400,000 and have been presented with two options. The first option is a fully amortizing loan with an interest rate of 3% and $2000 of origination fees. The second option is an interest only loan with an interest rate of 4% and $5000 of origination fees. Both loans are for 30 years and have monthly payments. What is the effective cost (rate) of the fully amortizing loan to the borrower if it is held for 30 years? Multiple Choice 3.04% 3.5% 2.94% 5%