Question 25 (2.4 points)

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Which of the following loan should you choose if you intend to hold the mortgage until the end? (which loan has a lower cost?)

	Loan A	Loan B
Loan amount	$100,000	$100,000
Term	30 years	30 years
Interest rate	6.25%	6.4%
Loan fee charged	$1,500	$500
Annual Percentage Rate	6.53%	6.5%

Question 25 options:

	Loan A because it has a lower interest rate.
	Loan B because it has a lower loan fee.
	Both are the same
	Loan B because it has a lower Annual Percentage Rate.

Section 2 (40 points)

Question 26 (4 points)

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You take a mortgage of $200,000 at 4.5% for 30 years. What is your monthly payment?

Question 26 options:

	$12,278
	$9,000
	$1,257
	$1,013