You have purchased a new home for $250,000 in want to obtain a conforming mortgage by putting down 20%.

Your mortgage provider offers you three alternatives:

A) a fixed-rate 30-year mortgage stress 9% with no points

B) a fixed rate 30 year mortgage at 8.25% with 2 points

C) A fixed rate 15 year mortgage at 7% with no points

What is the payment for mortgage B?

What is the breakeven period of time (in months) that you need to stay in the house for it to make sense for you to pay the points and take mortgage B instead of mortgage A?