In: Finance
A house price of $235,000 can be financed with the two loans with monthly payments:
Loan Amount | Term (years) | Interest Rate | |
Loan 1 | $ 180,000 | 30 | 5% |
Loan 2 | $ 20,000 | 30 | 7% |
What is the annual cost if there are no costs associated with the two loans and the borrower will hold the loan for entire term?
5.21%
5.81%
6.21%
6.81%