A $525,000 adjustable-rate mortgage is expected to have the following payments:


Year Interest Rate Monthly Payment
1–5 4% $2,506.43
6–15 6% $3,059.46
16–25 8% $3,464.78
26–30 10% $3,630.65


A fixed-rate mortgage in the same amount is offered with an interest rate of 4.85%.

What is the difference in the total cost between the two mortgages, rounded to the nearest dollar?



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