Multiple Cholce $2\mathrm{.}5$ points

You are working with a mortgage lender on the terms of a new $$350,00030-$year foed rate mortgage. The lender offers a rate of $4\%$ with no points $(-$inthly PITI $-$ $$1,671)$ or $3\mathrm{.}5\%$ with $1$ point $($monthly PITI $=$$$1\mathrm{.}571).$ If you plan to stay in the home for at least three years, you should

take the lower rate because you will get pay back on the cost of the point in less than $3$ years.

take the higher rate since you are not going to stay in the home long enough to get payback on the cont of the point

take the lower rate because you will get payback on the cost of the point within $24$ montho.

ake the higher rate because it will take you $42$ months to get payback on the cost of the point.