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 PV of the principal reduction is $

The net benefit or cost is $

The net benefit is ___; therefore you ____ pay the point.