You plan to purchase a house for $190,000 using a 30-year mortgage from your local bank. You will make a down payment of 10% of the purchase price. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 5.5%. Option 2: Mortgage rate of 4.0% with two discount points. Which option would you choose? Your bank offers you the following two options for payment: Option 1: Mortgage rate of 5% with 1 discount point. Option 2: Mortgage rate of 3.5% and 2.5 discount points. Which option would you choose? [Hint: consider only the incremental costs and benefits of Option 2 with respect to Option 1]