Filomena is deciding between two mortgages for her new home. The first

mortgage is an 80/20 mortgage with interest rates of 4.75 and 7.525%,

respectively. The second mortgage is a 30-year mortgage with a 5.25% and a

$42.56 monthly PMI. If the house price is $100,000, which mortgage payment

will be lower initially, and by how much?

A. 30-year mortgage by $33.28

B. 30-year mortgage by $39.55

C. 80/20 mortgage by $37.25

D. 80/20 mortgage by $55.01