You plan to purchase a house using a 15-year mortgage obtained from your local credit union. The house is priced at $100,000and you will make a down payment of 25 percent of the purchase price. The credit union has offered you two options.

Option A: The mortgage rate offered to you is 3.75 percent with zero discount points.

Option B: The mortgage rate offered to you is 3.25 percent with 3.5 discount points.

1. (20 pts) Calculate your monthly payments for each option. Show your work (either formula or 5-key approach entries).

2. (10 pts) Which option should you choose? Show your work (either formula or 5-key approach entries).

3. (20 pts) Fill out the first 2 rows of the mortgage amortization schedule of Option A.