# You need a loan of \$115,000 to buy a home. Calulate your monthly payments

You need a loan of \$115,000 to buy a home. Calulate your monthly payments and total closing costs for each choice below. Breifly dicuss how you would decide between the two choices.Choice 1- 30 year fixed rate at 12% with closing costs of \$1800 and no points.Choice 2- 30 year fixed rate at 11.25% with closing cost of \$1800 and 3 points.Questions:What is the monthly payment for choice 1?(don’t round until final answer, round to nearest cent as needed)What is the monthly payment for choice 2?(don’t round until final answer, round to nearest cent as needed)What is total closing cost for choice 1?What is total closing cost for choice 2?Why might choice 1 be the better choice?The monthly payment is higherThe closing cost are lowerThe monthly payment is lowerThe closing cost are higherWhy might choice 2 be the better choice?The monthly payment is higherThe closing cost are lowerThe monthly payment is lowerThe closing cost are higher