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    Real Estate Finance and Investments Study Set 2
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    Exam 6: Mortgages: Additional Concepts, Analysis, and Applications
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    A Borrower Finds That the Incremental Cost of Borrowing an Extra
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A Borrower Finds That the Incremental Cost of Borrowing an Extra

Question 4

Question 4

True/False

A borrower finds that the incremental cost of borrowing an extra $10,000 is 14%. A second loan can be obtained at 15% so the borrower would be better off by borrowing with the smaller loan and a second mortgage.

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