Consider the following pair of mortgage loan options for a $140,000

140,000 mortgage. Which mortgage loan has the larger total cost(closing costs+ the amount paid for points+ total cost ofinterest)? By howmuch?

MortgageA:

20-year fixed at 7.25

7.25% with closing costs of $2500

2500 and 1 point.

MortgageB:

20-year fixed at 5.25

5.25% with closing costs of $2500

2500 and 4

4 points.