Imagine that you are purchasing a house for $110,000. The lender requires a minimum down payment of 5% of the purchase price. The closing costs are $2,050. The loan term is 30 years. The interest rate is 6%. Real estate taxes on the house are $1,200 per year. Homeowners insurance is $750 per year. You also have to pay for private mortgage insurance. For this example, it would likely cost 1% of the loan amount for at least the first 5 years of the loan or $87.08 per month.

What is the difference between the two monthly payments and what is the difference in the interest paid?

Group of answer choices

$101.34 and $67,342.00

$92.31 and $53,029.20

$25.99 and $23,581.21

$52.79 and $37,927.59