John purchased a house for $300,000 and seeks an loan. His lender presents two options; 80% LTV at 4% or 90% LTV a 5%. Both loans are paid monthly and have a 30 year terms. What is the incremental cost of borrowing the additional funds? How would you answer change is 2 points were charged on the 90% loan? What would be the incremental cost of the additional money if John planned to stay in the home for only 5 years?