5. Consider the following pairs of choices for a $120,000 mortgage loan. Calculate the
monthly payment and total closing costs for each choice. Explain which loan you
would choose and why.
Choice 1: 30-year fixed rate mortgage at 4% with closing costs of $1200 and no
points.
Choice 2: 30-year fixed rate mortgage at 3.5% with closing costs of $1200 and 2
points.