Joe King has an annual income of $240,000. Joe is buying a $400,000 house in a very desirable area, sought after by buyers. He applies for a loan at the bank and is approved for fully amortizing 30-year FRM at an annual rate of 3.40%, with monthly payments, compounded monthly. The bank will not lend more than 80% LTV. The appraisal indicates the house is worth $375,000. Joe decides to shop around more and finds option #2 - a bank willing to give him a 30-year, 90% LTV mortgage based upon the $375,000 appraised value at an interest rate of 3.65%. What is the effective interest rate for the additional amount borrowed under option #2?