In: Finance
You are buying a house and the mortgage company offers to let you pay a "point" 1.0% of the total amount of the loan) to reduce your APR from 5.88% to 5.63% on your $419,000, 30-year mortgage with monthly payments. If you plan to be in the house for at least five years, should you do it? (Note: Be careful not to round any intermediate steps less than six decimal places.)
The monthly mortgage payment at 5.88% APR is $_ ?
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As nothing was mentioned excel is used.