Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are borrowing $ 2 5 0 , 0 0 0 to buy a house, using a standard 3 0 - year mortgage. Your mortgage
You are borrowing $ to buy a house, using a standard year mortgage. Your mortgage lender offers a mortgage with no points, or a mortgage with points. You plan on living in the house for exactly X months, paying only the required payment each month, and without refinancing your mortgage. You find that you are indifferent between the two mortage options, using the rate to discount cash flows between the two options. How many months are you planing on living in the house? Answer in months only, rounded to the nearest month.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started