Leslie and Ben are interested in a $250,000 fully amortizing loan and are deciding between 2 options, mortgage A and mortgage B

Mortgage A	Mortgage B
Loan Term: 30 years	Loan term: 15-years
Monthly payments	Monthly Payments
Up-front financing costs:$4,500	Up-Front financing costs: $7,500
Discount points: 2.5	Discount points: 2.5
Annual Interest rate: 5.75%	Annual interest rate: 5.25%

1. calculate the monthly payments for mortgage A and B

2. Calculate the effective borrowing cost for or mortgage A and B

3. Calculate Lender's yield for or mortgage A and B

4. Suppose you are the borrower. Based on the effective borrowing costs, which loan would you choose? Explain your answer in 1-2 sentences.

5. Suppose you are the lender. Based on the lender's yield, which loan would you prefer? explain your answer in 1-2 sentences.