You Need a 30-Year FRM and Have Two Choices

You need a 30-year FRM and have two choices.Option one is 6.50% contract rate with 2.50 discount points and an APR of 6.75%.Option two is 6.75% contract rate with no discount points.Neither loan has any other financing fees.If you plan to hold the loan for five years,which is the better option to minimize your effective borrowing costs?

A) 6.50% with 2.50 points
B) 6.75% with no points
C) doesn't matter,the effective cost is the same
D) can't determine without knowing the loan amount