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25-05-2023
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You are looking to purchase a house for $200,000 with either a70% or 80% LTV loan (both 30-year mortgages).The 70%LTV loan has a rate of 2.75% with 1 point due at closing and the 80% LTVloan has a rate of 2.875% with 1.25 points due at closing. What the marginal borrowing cost of the 80% LTV loan in relation to the 70% LTV loan if you plan to pay off the loan after 48 months?

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