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

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Finance

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

How long must the owner stay in the house to make it worthwhileto 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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Transcribed Image Text

A homeowner can obtain a $250,000, 30-year fixed-rate mortgageat a rate of 6.0% with zero points or at a rate of 5.5% with 2.25points.How long must the owner stay in the house to make it worthwhileto pay the points if the payment saving is not invested?A.7.15 yearsB.6.04 yearsC.7.53 yearsD.5.90 years

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