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A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0% with zero points or at a rate of 5.5% with 2.25
A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0% with zero points or at a rate of 5.5% with 2.25 points.
How long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is not invested?
A. | 7.15 years | |
B. | 6.04 years | |
C. | 7.53 years | |
D. | 5.90 years |
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