Q2. You plan to purchase a house for $195,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20% of the purchase price and monthly payment. You will not pay off the mortgage early.

Your bank offers you the following three options the payment:

Option 1: Mortgage rate of 5.5% and zero points.

Option 2: Mortgage rate of 5.35% and 1 point

Option 3: Mortgage rate of 5.35 % and 1.5 points

which option should you choose?