You are choosing between two mortgage options for a $800,000 property. The first option is a 60% LTV mortgage at an interest rate of 6%. The payment on this mortgage is calculated as if it were a 30 year mortgage, but the mortgage balance is due in 10 years. This loan also charges a 1.5% origination fee. The second option consists of two loans combined together. The primary loan (first mortgage) is a 50% LTV loan at an interest rate of 5.75%. This loan is an Interest Only loan due in 10 years and the loan charges a 1% origination fee. The secondary loan for this option is a 10% LTV loan at an interest rate of 9%. This loan is also interest only, is also due in 10 years, and charges a 2% origination fee. What is the effective rate of the second option over 10 years? Multiple Choice 6.4503% 8.2415% 6,2731% 7.8243%