You have two competing loans towards choosing mortgage for $300,000. Both the loans are fully amortizing loans. - Alternative A is a 30-year loan at 6.6% with 5 points. The loan has a pre-payment penalty of 2% of the outstanding balance if the loan is terminated sooner than 15 years. - Alternative B is a 30-year loan at 7.2% with 2 points. The loan has a pre-payment penalty of 3% pre-payment penalty if closed in less than 15 years.

A) Which alternative is better assuming you plan to stay with the loan for 30 years?