Question: A bachelor is trying to decide between two mortgage options to finance the cost of a $225,000 house. Find the monthly payments and the total

A bachelor is trying to decide between two mortgage options to finance the cost of a $225,000 house. Find the monthly payments and the total interest paid for both options.

a. The bachelor pays no down payment and finances the house with a 40 year mortgage at 6.25% interest. No points are paid at closing.

b. The bachelor pays a 20% down payment and finances the house with a 15 year mortgage at 5.50% interest. No points are paid at closing.

c. Which option do you think is better for the bachelor?

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