Which of the following statements about interest rates according to the material covered in the lecture are TRUE:

1. A comparison rate includes expected interest expenses, upfront fees and ongoing fees on a $150,000 loan over a 25 year loan term.
2. If variable interest rates are expected to increase in the future, choosing a fixed-interest rate for a new home loan will normally reduce your interest expenses compared to choosing a variable interest rate on a new home loan.

Neither of the statements are true (both are false)

Only statement 1 is true

Only statement 2 is true

Both statements are true (neither are false)