You are considering the following options on a $250,000 mortgage: 1) A 15-year 3% fixed-rate; 0 points 2) A 15-year 2% fixed rate with 2 points What is the net present value of paying the points if you plan to keep the mortgage for five years? [Assume that the only savings from paying the points come from the difference in monthly payments between the two options; i.e. ignore the savings from differences in o/s balance at the end of five years). Use the 2% interest rate to discount the monthly savings. $13,287.24 + $1,713.92 - $1,713.92 $0 THE FOLLOWING INFORMATION WILL BE USED TO ANSWER THE NEXT FOUR QUESTIONS. You are considering the following options on a $250,000 mortgage: 1) A 15-year 3% fixed-rate; 0 points 2) A 15-year 2% fixed rate with 2 points