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You are buying a $ 9 7 5 , 0 0 0 house and need to borrow 9 5 % of the value of the
You are buying a $ house and need to borrow of the value of the house LTV You can borrow this as a single loan for a term of years. Alternatively, you can split your loan financing and borrow LTV fully amortising loan at annual interest maturing in years and the remaining LTV with a fully amortising loan at annual interest maturing in years. What rate should be offered in the single LTV loan for the borrower to be indifferent between the two options single vs split financing assuming the house is sold after years and loans repaid? All loans have monthly payments. Enter your answer rounded to two decimal places without the sign eg is
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