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Without buying points, a monthly mortgage payment will be $1,250. buying 1 point at closing would reduce the payment to $1,236. to the nearest year, how long would it take to break even by buying 1 point, with a $100,000 mortgage?

Respuesta :

rhondaelliott16

Answer:

b. 6 years

Step-by-step explanation:

edge2021

1 point= $1000

$4,250-$1,236=$14 (monthly savings)

$1000-$14=71.4 months

71.4/12=5.95 years = ~6 years

The time that will be taken to break even will be 6 years.

How to calculate break even.

From the information, the monthly mortgage payment will be $1,250. buying 1 point at closing would reduce the payment to $1,236.

The time taken will be:

Monthly savings = 4250/1236 = 14

Time taken = 7

1000/14 = 71.4 months= 6 years

Learn more about break even on:

https://brainly.com/question/2846088

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