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.

Group of answer choices

$13,287.24

+ $1,713.92

- $1,713.92

$0