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Read carefully and solve Given in the table is the information for two loans, Loan 1 charges no points, Loan 2 does charge points. The

Read carefully and solve

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Given in the table is the information for two loans, Loan 1 charges no points, Loan 2 does charge points. The buyer is assumed to live in the house. For how many years will the homeowner need to live in the house to make it financially worthwhile to pay the points to get the lower interest rate? Loan 1No Points Loan 23 Points PV $800,000PV $800,000 i1 6.25% i2 6.10% N 31 N 31 m 13 m 13

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