Bud is offering dhouse for sale for $180.000 with an assumable loan which was made 5 years ago for $140,000 at 8.75%5 over 30 years. Kelsey is interested in beyying the property and can mube a $20,000 down payment. $ he has the option to borrow a single constant payment mortgage of $160,000 at 9.75% for 25 years. Aterratively, she can assume Bud's existing martgago and borrow a second mortgoge for the balance amount at 12.5% for 25 years. What is the effective cost of the contained lasis? Which option is better for Kelsey? (Hint: Bud's mortgage balance plus the amount of second mortgage must be $160.000 because her down payment is $20,000 either way.) 9.3991 assume the foan and tale a second morteage 10,63%, take the single lom option 9,39\%, take the single loan option 10. 638 a asume the loan and take a second mortsage. $260,660,40 $229.010.77 $219,339,60 Bud is offering dhouse for sale for $180.000 with an assumable loan which was made 5 years ago for $140,000 at 8.75%5 over 30 years. Kelsey is interested in beyying the property and can mube a $20,000 down payment. $ he has the option to borrow a single constant payment mortgage of $160,000 at 9.75% for 25 years. Aterratively, she can assume Bud's existing martgago and borrow a second mortgoge for the balance amount at 12.5% for 25 years. What is the effective cost of the contained lasis? Which option is better for Kelsey? (Hint: Bud's mortgage balance plus the amount of second mortgage must be $160.000 because her down payment is $20,000 either way.) 9.3991 assume the foan and tale a second morteage 10,63%, take the single lom option 9,39\%, take the single loan option 10. 638 a asume the loan and take a second mortsage. $260,660,40 $229.010.77 $219,339,60