Greg is selling his home for $175,000 with an assumable loan which was made 5 years ago for $135,000 at 8.25% over 30 years. Mike is interested in buying the property and can make a $20,000 down payment. A second mortgage can be obtained for the balance at 12.5% for 25 years. What is the effective cost of the combined loans, if Mike would like to compare this financing alternative to obtaining a first mortgage for the full amount? *show how you calculate the answer*