Bud is offering a house for sale for $180,000 with an assumable loan which was made 5 years ago for $140,000 at 8.75 percent over 30 years. Kelsey is interested in buying the property and can make a $20,000 down payment. A second mortgage can be obtained for the balance at 14 percent for 25 years. What is the effective cost of the combined loans that Kelsey can use to compare this financing alternative to obtaining a first mortgage for the full amount?