Consider the following pair of mortgage loan options for a $160,000 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: 15-year fixed at 9.25% with closing costs of $1800 and 1 point
Mortgage B: 15-year fixed at 8.25% with closing costs of $1800 and 2 points
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Choose the correct answer below, and fill in the answer box to complete your choice.
(Do not round until the final answer. Then 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 $