You are working with a mortgage lender on the terms of a new $300,000 30-year fixed rate mortgage. The lender offers a rate of 4% with no points (monthly PITI = $1,432) or 3.75% with 1/2 point (monthly PITI = $1,389). If you plan to stay in the home for at least three years, you should

Group of answer choices

take the lower rate because you will get pay back on the cost of the 1/2 point in less than 3 years.

take the lower rate because you will get payback on the cost of the 1/2 point within 24 months.

take the higher rate because it will take you 42 months to get payback on the cost of the 1/2 point.

take the higher rate since you are not going to stay in the home long enough to get payback on the cost of the 1/2 point