Consider the following pair of mortgage loan options for a $110,000 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: 20-year fixed at 9.25% with closing costs of $2,600 and 1 point.

Mortgage B: 20-year fixed at 8.25% with closing costs of $2,600 and 4 points.