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

Transcribed Image Text:

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 6.18% to 5.93% on your $425,000, 30-year mortgage with monthly payments. If you plan to be in the house for at least 5 years, should you do it? (Note: Be careful not to round any intermediate steps less than six decimal places.) The monthly mortgage payment at 6.18% APR is $ 2597.48 (Round to the nearest cent.) The monthly mortgage payment at 5.93% APR is $ (Round to the nearest cent.) 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 6.18% to 5.93% on your $425,000, 30-year mortgage with monthly payments. If you plan to be in the house for at least 5 years, should you do it? (Note: Be careful not to round any intermediate steps less than six decimal places.) The monthly mortgage payment at 6.18% APR is $ 2597.48 (Round to the nearest cent.) The monthly mortgage payment at 5.93% APR is $ (Round to the nearest cent.)