Hannah is single, and has decided to make an offer to purchase a home in Corpus Christi for the contract purchase price of $175,000. If her offer is accepted, she will make a 5% down payment, so that she will have to purchase PMI at an annual cost of $1,500. She will finance the remaining portion with either a 15-year fixed rate mortgage or a 30-year fixed rate mortgage. Both the 15-year and the 30-year mortgages have an annual interest rate of 4.25%. The Nueces County annual property tax on this property is $4,200, and the annual hazard insurance premium is $1,680.

If Hannah purchases the home under a 15-year mortgage, what will be her total monthly payment (including both P & I and escrow)?

	a.	$1,432.85
	b.	$1,307.85
	c.	$817.85
	d.	$1,865.66
	e.	$1,349.98