Consider the following pair of mortgage loan options for a $160 comma 000

mortgage. Which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? By how much?

Mortgage A: 15-year

fixed at 9.25%

with closing costs of $2200

and 1 point.

Mortgage B: 15-year

fixed at 7.5%

with closing costs of $2200

and 4 points.

Choose the correct answer below, and fill in the answer box to complete your choice.

A.Mortgage B has a larger total cost than mortgage A by $.?

.

B.Mortgage A has a larger total cost than mortgage B by .?

.