consider the following pair of mortgage loan options for a $115,000
[1-(104)
mortgage. which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? by how much?
mortgage a: 20-year fixed at 12.25% with closing costs of $1500 and 1 point.
mortgage b: 20-year fixed at 11.25% with closing costs of $1500 and 2 points.
choose the correct answer below, and fill in the answer box to complete your choice.
(round to the nearest dollar as needed.)
o a. mortgage a has a larger total cost than mortgage b by $
.
ob. mortgage b has a larger total cost than mortgage a by $