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

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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