You plan to take out a $600,000, 30-year mortgage to purchase a single-family home. The 30-year mortgage interest rate is 2.75%, which translates to monthly payments of $2,449.45. You can also purchase 1 discount point to lower the interest rate to 2.50%, which would lower your monthly payment to $2370.73. 

What is the payback period of purchasing 1 discount point?

Answer rating: 100% (QA)

To calculate the payback period of purchasing 1 discount point we need to compare the total costs of ... View the full answer