NAME Problem 4-Discount Mortgage (8 pts) You plan to purchase a house for $1,000,000 using a conventional 30-year fixed rate mortgage obtained from Quonsut Point Bank. You will make a down payment of 20% of the purchase price such that you are borrowing $800,000. The bank's loan officer offers you two options: Option A: Interest rate of 7.00% and zero points Option B: Interest rate of 6.50% and 2 points 4A. Calculate the monthly mortgage payment (principal and interest) for Option A. 4B. Calculate the monthly mortgage payment (principal and interest) for Option B. 4C. What are the effective annual rates of Option A and Option B? Assume you keep the mortgage for its entire term. 4D. Estimate at what point (i.e. how many months after closing) you would become indifferent between Option A and Option B