You are buying a house and your mortgage company/bank offers to "let" you buy a "point" (1% of the loan amount) to reduce your APR from 6.5% to 6.25% on your $400,000, 30-year mortgage.

Explain whenyouwould/shouldbuy the point and whenyouwould/should notbuy the point for the three scenarios belowif:

A)You plan to be in the house for less than 5 years?

B)You plan to be in the house for 5-15years?

C)You plan on this being your "forever" home?This means you have the mortgage for the full 30 years.