Answer completely with all steps including all formulas, Listing of variables and plugged in values for equations.

Two mortgage loans are available for a 125,000 loan. They are both paid monthly for 30 years. Use the given information for each to answer the questions.

Mortgage 1

Monthly payment= 525

Closing costs = 2000 and 4 points

Mortgage 2

Monthly payments = 562

Closing costs = 1200 and 2 points

a) Closing cost difference

b) monthly payment difference

c) payback period ( break even point) to nearest month