Iphone 5 callers hear only static

I have had my iphone 5 for about 18 months.  About a month ago callers complained they only heard static.  When I call the phone my self,  as soon as I pick up all I hear is static, I don't even half to speak.  If I switch to speaker it goes away.  If I am on bluetooth they can hear me.  If I record video the sound is fine.   I took it to apple store and they said it was the mic and that the phone was no longer under warranty. I did not ask apple about fixing it,  I am sure they would charge alot.   And of course my verizon insurance will replace it but it will cost $190.  I would like to try and fix the mic, but it is my understanding there are multiple mic, so which one would it be?

A network extender? Not sure what that is.. Sounds like it might help here at home.. But what about outside the house? At work, the store, or just out on the road?
I'm hopeing this is something that can get fixed.. I hate to think I wasted all this money on something that doesn't work.. Does apple have a return police?
I think I'll try getting an appointment at the apple store to see if they can fix this issue.
Thanks for your help.

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