Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs.

You need a $$120,000$ loan.

Option $1$: a $30-$year loan at an APR of $8\%.$

Option $2$: a $15-$year loan at an APR of $7\%.$

Find the monthly payment for each option.

The monthly payment for option $1$ is $

The monthly payment for option $2$ is $

$($Do not round until the final answer. Then round to the nearest cent as needed.$)$

Find the total payment for each option.

The total payment for option $1$ is $

The total payment for option $2$ is $

$($Round to the nearest cent as needed.$)$

Compare the two options. Which appears to be the better option?

A$.$ Option $1$ is the better option, but only if the borrower plans to stay in the same home for the entire term of the loan.

B$.$ Option $1$ will always be the better option.

C$.$ Option $2$ will always be the better option.

D$.$ Option $2$ is the better option, but only if the borrower can afford the higher monthly payments over the entire term of the loan.