The following seven (7) questions (including this one) refer to these facts: You have purchased a new home for $250,000 and want to obtain a conforming mortgage by putting down 20%.

Your mortgage provider offers you three alternatives:

A: a fixed-rate 30-year mortgage at 9% with no points

B: a fixed-rate 30-year mortgage at 8.25% with 2 points

C: a fixed-rate 15-year mortgage at 7% with no points

You will want to note the above mortgage terms on a separate piece of paper as you answer the subsequent, related questions.

What is the breakeven period of time (in months) that you need to stay in the house for it to make sense for you to pay the points and take mortgage B instead of mortgage A?