Qusetion: A borrower needs $300,000 in cash to purchase a residential property. The lender offers this borrower a 30 year FRM at 4% with 3 points. The lender also alternatively offers the borrower a 30 year FRM loan for $300,000 an no points with a rate of 4.75%? If the borrower plans to hold the loan for 10 years, what is the difference in effective interest rates between the two loans? (Express your answer rounded to 2 decimal places; for example, if you answer was two and three quarters percent, enter 2.75.)