A borrower is faced with choosing between two CPM loans. Loan A is available for $330,000 at 4.25% interest for 30 years, with 1.8 points to be included in the closing costs. (8)

Loan B would be made for the same amount, but for 4.40% interest for 30 years, with 0.5 point to be included in the closing costs.

If the loan is repaid after 7 years, which loan would be the better choice? Make sure to show all calculations.