please use baii calc

Part 1 You are buying a $350,000 home and are deciding between two fixed rate mortgage options. The 80% LTV option has an interest rate of 6% over 30 years. The 90% LTV option has an interest rate of 6.5% over 30 years with 2 discount points. . What is the incremental borrowing cost when choosing the 90% LTV option over the 80% LTV option? Why is the effective borrowing cost higher for the 90% LTV option? Part 2 Assume that you chose the 80% LTV mortgage from the previous section, but after 10 years are thinking about refinancing for $1,500. You will only be in the home for another 5 years. The new loan would be an ARM. Interest rates on 20-year ARMS are currently 3%. Interest rates are expected to increase to 4% in years 2 and 3 and then to 5% in years 4 and 5. . Find the return on your $1,500 refinancing cost. Should you refinance? . If interest rates rose faster than expected, how might this change your answer? (No calculation is needed. Explain in words.) How would larger than expected increases in interest rates impact the supply and demand for homes? Part 3 When you made the offer on your home in Part 1, you thought you were getting a General Warranty deed. It turns out that the owner can only give you a Quitclaim deed. How might this impact the market value of the property and your ability to get mortgage financing