Question
I am borrowing a $180000 30-year mortgage loan to buy a house. The interest rate is 4%. I can also buy 2 points to make
I am borrowing a $180000 30-year mortgage loan to buy a house. The interest rate is 4%. I can also buy 2 points to make the rate down to 3%. How many months will it take to break even if I buy the 2 points (round to the nearest month)?
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
