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 6.47% to 6.22% on your $407,000, 30-year mortgage with monthly payments. If you plan to be in the house for at least five years, should you do it? (Note: Be careful not to round any intermediate steps less than six decimal places.) The monthly mortgage payment at 6.47% APR is $ 2564.49. (Round to the nearest cent.) The monthly mortgage payment at 6.22% APR is $ 2498.03. (Round to the nearest cent.) The lower interest rate on the mortgage results in monthly savings of S 66.46. (Round to the nearest cent.) The PV of the monthly savings is $ 3419.56. (Round to the nearest cent.) The balance of the mortgage at the end of five years at 6.47% APR is $ 380864.61. (Round to the nearest cent.) The balance of the mortgage at the end of five years at 6.22% APR is $ 379745.90. (Round to the nearest cent.) The principal reduction due to the lower interest rate is $ 1118.71. (Round to nearest cent.) The PV of the principal reduction is S 820.35. (Round to the nearest cent.) The net benefit or cost is $ 169.91. (Round to the nearest cent.) The net benefit is therefore, you pay the point. (Select from the drop-down menus.)