In 6466, round to the nearest dollar.Suppose that you need a loan of $100,000 to buy a

Chapter 0, Problem 66

(choose chapter or problem)

In 64-66, round to the nearest dollar.Suppose that you need a loan of $100,000 to buy a home.Here are your options:

Option A: 30-year fixed-rate at 8.5% with no closing costs and no points

Option B: 30-year fixed-rate at 7.5% with closing costs of $1300 and three points.

a. Determine your monthly payments for each option and discuss how you would decide between the two options.

b. Which mortgage loan has the greater total cost (closing costs + the amount paid for points + total cost of interest)? By how much?

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