You are going to buy a house for $170,000 and have decided to put 20 % down. You have 2 options for the financing: Option 1 is a 30 year 7 % loan with closing costs of $1500 plus 1.5 points. Option 2 is a 6.5% 30 year loan with closing costs of $2000 and 3 points. Evaluate both options and answer the following question.
If you live in the house for 30 years how much will you have paid for the house including interest assuming you take the best option?