What is the incremental cost of borrowing the extra

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Mr. Al-Bakor has an existing loan with payments of $782.34. The interest rate on the loan is 10.0% and the remaining loan term is 10 years. The home is now worth $120,000 and Mr. Al-Bakor would like to borrow an additional $30,000 through a wraparound loan. Terms of the wraparound loan are 12.25% interest with monthly payments for 10 years. What is the incremental cost of borrowing the extra $30,000 through a wraparound loan?

Reference no: EM131349165

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What is the incremental cost of borrowing the extra : Mr. Al-Bakor has an existing loan with payments of $782.34. The interest rate on the loan is 10.0% and the remaining loan term is 10 years. The home is now worth $120,000 and Mr. Al-Bakor would like to borrow an additional $30,000 through a wraparoun..

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