You decide to buy a house with price of $500,000. You put 20% down payment and consider a 15-year fixed rate mortgage to pay the remaining balance. The lender offers you three choices of the mortgage with monthly payments: Choice Rate Points 7.00% | 0.00 6.65%| 0.30 6.50% | 5.00 Suppose that the origination cost is $8,000. Questions [15 points] If the loan will be outstanding for 15 years, what is the effective cost for each choice? Which choice would you like to make? Why? 2. 1. [10 points]Which mortgage choices are not properly priced? Why