What is the combined interest cost of financing package

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Reference no: EM13880887

A borrower is considering the following loan package for a $400,000 home purchase:

First mortgage: $300,000 for 30 years at 5% interest

Second Mortgage: $100,000 for 5 years at 7% interest.

What is the combined interest cost (effective cost) of this financing package?

Please provide explanation and how you did this using a financial calculator

Reference no: EM13880887

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