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

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?

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jeff jeffy answered 8 months ago

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

A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0 percent with zero points or at a rate of 5.5 percent 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? please answer in excel format

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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a homeowner can obtain 250,000, 30 year fixed mortgage at a rate of 6% with zero points or at a rate of 5.5% with 2.25 points. IF you will keep the mortgage for 30 years, what is the net present value of paying the points (to the nearest dollar)

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