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A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0% with zero...

A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0% with zero points or at a rate of 5.5% with 2.25 points.

How long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is not invested?

A.

7.15 years
B.

6.04 years
C.

7.53 years
D.

5.90 years

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Expert Solution

jeff jeffy answered 2 years ago
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