You apply for a $500,000 mortgage from your local bank for a 7.50%, 30-year mortgage. But the bank counteroffers you a rate of 7.00% for 30-year mortgage (APR) but you must also pay an upfront fee of 3 "points."

Question: Suppose that your income qualifies you for either mortgage. Use the breakeven point, that is, how long before you recover the points paid with the lower monthly payment. If you plan to stay in your home for a period exceeding the breakeven point, then the breakeven approach suggests that paying the points is superior. What is the breakeven point for these two mortgages?