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%Question 7 1 pts A borrower takes out a " hybrid mortgage loan " for $200.000 with monthly payments This loan combines elements of fixed - rate mortgage ( FRMs ) for periods of 2 years after which interest rates are reset and the loan becomes an adjustable mortgage ( ARM ) . The amortization period is 30 years . The first two years of the loan have a " teaser rate of 4% After that the interest ate can reset with a 2% annual interest rate cap Assume that on the reset date , the composite rate ( i . e . the market index plus the margin ) is 5% . What would the Year 3 monthly payment be ? $955 $1 067 $2 071 $1 , 186