Theresa is buying a condo that costs $127,500. She has $8,300 in savings and earns $3,200 a month. Theresa would like to spend no more than 20% of her income on her mortgage payment. Which loan option would you recommend to Theresa?

a. 30 year fixed, 6.5% down at a fixed rate of 5%

b. 30 year FHA, 3.5% down at a fixed rate of 6.5%

c. 30 year fixed, 5% down at a fixed rate of 6.25%

d. 30 year fixed, 10% down at a fixed rate of 5.75%