"susan lists her home with broker william for $90,000 on march 16. on august 1, henry makes an offer of $85,000, accompanied by a binder deposit of $5,000, and asks the seller to pay points on a new loan of $80,000. susan counters at a price of $87,500 and agrees to pay four points on a loan of $82,500. henry accepts. henry qualifies for the loan at an interest rate of 9% and agrees to pay a 1% origination fee. the monthly payment for principal and interest is $663.81. henry also will be charged for prepaid interest for the balance of the month of closing. the closing date is september 15, and henry is charged for the day of closing. henry will purchase an insurance policy for $720. city and county taxes are $760. susan agreed to pay her own attorney's fees of $125. henry must pay $130 for attorney's fees, $56 to record the mortgage, $6 to record the deed, and $640 for title insurance. the payoff on susan's existing mortgage will be $64,455.16 on the day of closing. broker william's fee is 6%. doc stamps and intangible taxes are paid according to custom. use the 365-day method for prorations. how are the documentary stamp taxes on the deed handled on the closing statement? "

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.