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Payback period of purchasing 1 discount point

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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?

Reference no: EM133116279

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