[Charolette]

...(Mortgage)? Which mortgage loan has the greatest total cost (closing costs+the amount paid for points + total cost of interest) By how much?A 120000 mortgage with two loan options:Mortgage A: 30 years fixed at 7% with closing costs of $2000 and 1 pointMortgage B: 30 years fixed at 6.5% with closing costs of $1500 and 4 pointI know the answer is A but I do not understand which formula to use to get it

[Bail Out]

You have not told whether interest is compounding annually. You also have not told what point is. What is 120000?A:A = 120000(1.07)^30 + 2000 + 1B:A = 120000(1.065)^30 + 1500 + 4