Tom wants to purchase a property for $300 000 . He can borrow a 80% LTV fixed rate loan . with 4 5% annual interest rate and a 3% origination fee . Or , he can borrow a 90% LTV fixed rate loan , with 5 . 5 % annual interest rate , and a 3% origination fee . Both loans have a 30 year amortization period . If he plans to prepay the loan at the end of 3 rd year , what will be the incremental cost of borrowing for him to to borrow the additional 10% loan amount 12. 25% 14 470% 13.68% 10%