You have two options for a 30 year fixed rate mortgage: $500,000 mortgage, 5% rate $500,000...

You have two options for a 30 year fixed rate mortgage:

$500,000 mortgage, 5% rate

$500,000 mortgage, 4.50% rate, 2 discount points

For how long must the mortgage remain in effect for you to choose the lower rate and pay the discount points

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Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 year ago

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