You need to borrow $235,000 to buy a house and are considering two different mortgages.
Mortgage A: 3% interest for 30 years
Mortgage B: 4.5% interest for 25 years
A. Which loan will require you to pay the least in interest over the entire length
of the loans? (Type either the letter “A” or “B”, depending on your answer).
B. If you choose the loan that requires the least interest, how much money will
you save over the entire length of the loan (what is the absolute difference
between the total amounts of interest paid)? Round your answer to the
nearest dollar.