Question
You are buying a house and the mortgage company offers to let you pay a point (1.0 % of the total amount of the loan)
You are buying a house and the mortgage company offers to let you pay a "point" (1.0 % of the total amount of the loan) to reduce your APR from 5.96 % to 5.71 %
on your $429,000, 3030-year mortgage with monthly payments. If you plan to be in the house for at least five years, should you do it?
The monthly mortgage payment at 5.96 % APR is $
The monthly mortgage payment at 5.71 % APR is $
The lower interest rate on the mortgage results in monthly savings of $
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Financial Times Guide To The Financial Markets
Authors: Glen Arnold
1st Edition
0273730002, 978-0273730002
