Gretta needs a $300,000 mortgage and is offered two choices. The monthly payments for the fixed rate and predicted payments for the ARM are shown.
Adjustable Rate Mortgage
Year Monthly
Payment
1-15 $1,610.46
Adjustable Rate Mortgage
Year Monthly
Payment
1-5 $1,520.06
6-15 $1,728.54
What is the difference between the total costs of the mortgages rounded to the nearest hundred?
$8,700
$1,700
$15,800
$5,000