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You are buying a house and the mortgage company offers to let you pay a...

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Question

Finance

You are buying a house and the mortgage company offers to let you pay a "point"

(1.0%

of the total amount of the loan) to reduce your APR from

6.16%

to

5.91%

on your

$430,000,

30-year

mortgage with monthly payments. If you plan to be in the house for at least five years, should you do it? (Note: Be careful not to round any intermediate steps less than six decimal places.)

Answer & Explanation Solved by verified expert
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