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You are looking to invest in a $1,000,000 property. He can obtain either a 70% LTV loan at 6% interest rate for 25 years or

You are looking to invest in a $1,000,000 property. He can obtain either a 70% LTV loan at 6% interest rate for 25 years or an 80% LTV loan at 7% interest for 25 years. Both loans require monthly payments and are fully amortizing. 1. What is the monthly payment for each loan? 2. What is the incremental cost of borrowing the additional 10% of value?

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