18. Harry decides to finance his new home with a 30-year fixed mortgage. Because he figures he...

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18. Harry decides to finance his new home with a 30-year fixed mortgage. Because he figures he will be in this home for a long time, he decides to pay a fully deductible discount point on his mortgage to reduce the interest rate. Assume that Harry itemizes deductions and has a constant marginal tax rate over time. Will the time required to recover the cost of the discount point be shorter or longer if Harry makes extra principal payments starting in the first year (as opposed to not making any extra principal payments)? Explain.

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