What is the net present value of paying the points

Reference no: EM13284213

A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0% with zero points or at a rate of 5.5% with 2.25 points.

If you will keep the mortgage for 30 years, what is the net present value of paying the points (to the nearest dollar)?

Reference no: EM13284213

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