QUESTION 7 You plan to purchase an $195,000 house using a 30-year mortgage obtained from your local bank. You will need to make a down payment of 20% of the offer price. No prepayment Your bank offers you two options. Which is better and why? Option1: The mortgage rate offered is 5.5 and zero points Option 2: The mortgage rate offered is 5.35 and 1.5 points You now know the monthly PMT required under each option. Calculate the cost of Option 2's points (round to 2 decimals)