John would like to move from the city into the suburbs and has been saving up a large down payment for a home. which is the most cost effective way for john to buy a house in the suburbs?

Strictly cost effective would be to pay cash for the house. Second most cost effective would be a very short term mortgage, less that 5.5 years which is the point where long term loans become equal amounts interest and principle.

Ithink your answer is is d