Jack and Diane are considering purchasing a new home. They have identified a suitable option, a two bedroom townhouse that will cost $$212,400$ to purchase. They are now trying to select the best method of financing and have identified a couple of suitable options. As their most trusted friend, they have asked for your help in selecting the best option for their needs. They plan to live in this townhouse for only $10$ years, after which they anticipate needing a larger home, with a backyard, to accommodate their growing family.have received one more offer for a home mortgage. This option Option C$,$ is described below. The purchase cost $($$$212,400)$ of the condo will remain the same and the time they expect to remain in the home $(10$ years$)$ remain the same. Details of this new loan option are described below.

Option D: A $30$ year adjustable rate mortgage $($ARM$)$ in which the initial interest rate of $4\mathrm{.}25\%$ APR for the first three years of the loan. After this initial fixed rate period the interest rate will change as described below. This option will require a $22\%$ down payment, which will again be paid from their savings. The $$5500$ in closing costs and fees can once again be included in the loan finance amount. Payments will once again be made on a monthly basis.