After years of saving to buy a house you have finally saved enough for a down payment. Before you start looking, you want to know if you can fit the payments into your budget. You are not a typical home buyer, because you have taken a finance class at Texas Tech. You'd like to know what the monthly payments will be in the price range you are considering to make sure it could fit your budget.

You have narrowed your choices and have found a house worth $$275,000$

You have $20\%$ to put as a down payment on the home and will finance the remainder. After speaking to several mortgage companies, the following financing options seems to be the best:

Length of loan $=15$ year

Monthly Payments

Mortgage interest rate: $4\mathrm{.}25\%$

What will the balance be after the first year if you finance the mortgage for $15$ years?

A$.$ $$191,161$

B$.$ $$212,401$

C$.$ $$159,301$

D$.$ $$209,283$