Question
You got a $500,000 mortgage for your new home. This is a 30- year fixed rate constant amortization mortgage with the rate at 8.00 %.
You got a $500,000 mortgage for your new home. This is a 30- year fixed rate constant amortization mortgage with the rate at 8.00 %. You can pay 1.5 point to lower your mortgage rate to 7%. How long should you keep the house to make the point payment break even?
Step by Step Solution
3.41 Rating (157 Votes )
There are 3 Steps involved in it
Step: 1
To determine how long you need to keep the house to make the point payment break even we need to cal...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
