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

You need a $$$$200$ comma $000$ loan.

Option$1$: a$30-$year loan at an APR of $9\%.$

Option$2$: a$15-$year loan at an APR of $8\mathrm{.}5\%.$

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Part $1$

Find the monthly payment for each option.

The monthly payment for option $1$ is $$$

$$

enter your response here.

The monthly payment for option $2$ is $$$

$$

enter your response here.

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

Part $2$

Find the total amount paid for each option.

The total payment for option $1$ is $$$

$$

enter your response here.

The total payment for option $2$ is $$$

$$

enter your response here.

$($Use the answers from the previous step to find this answer. Round to the nearest cent as$$ needed.$)$

Part $3$

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

A$.$

Option $2$ will always be the better option

B$.$

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

C$.$

Option $1$ will always be the better option.

D$.$

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.