Suppose you are shopping for a mortgage and the lender presents you with a long menu of loan options. For each option, there is a discount point charged and an interest rate given. The amount of the point ranges anywhere from -2% to 3%. When would it be optimal for you select a loan with a discount point of 3%? If you have a very long holding period O Never If you have a very short holding period Only with an ARM O Only when the point is equal to the effective borrowing cost