Choose: Larger Loan at Higher Rate or Smaller Loan at Lower Rate

[Shefali R.]

Hi - Financing experts, need help choosing between two loan options on the table. 

1. Bank A is offering $400k for Prime + 1% (small local bank) 

2. Bank B is offering $435k for Prime +1.75% (large national bank)

All other terms are identical. Is it worth paying an extra .75% on entire principal for an additional financing of $35k? What other factors do you consider when choosing a funding option. 

Thanks so much!