Wally Bee purchased a new home for $450,000 with a $90,000 down payment. He financed the remainder with a 3% mortgage for 30 years.

Wally's bank has offered to lower the 3% interest rate on his 30 year loan to 2.65% if Wally will pay 1 1/4 points. What will the points cost Wally?

Group of answer choices

$5625

$5175

$4850

$4500