Question: Given in the table is the information for two loans, Loan 1 charges no points, Loan 2 does charge points. The buyer is assumed to

Given in the table is the information for two loans, Loan 1 charges no points, Loan 2 does charge points. The buyer is assumed to live in the house. For how many years will the homeowner need to live in the house to make it financially worthwhile to pay the points to get the lower interest rate? Loan 1 PV No Points $800,000 6.25% Loan 2 PV i2 11 N 3 Points $800,000 6.10% 30 12 30 12 m m

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