1.  

You need a loan of $175,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice 1: 30-year fixed rate at 4% with closing costs of $2800 and no points. Choice 2: 30-year fixed rate at 3.5% with closing costs of $2800 and 5 points. What is the monthly payment for choice 1? (Do not round until the final answer. Then round to the nearest cent as needed.)