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Lenny and Lisa have obtained a 30-year, fixed rate mortgage for $675,250 with a 7.25% interest rate. They purchased 3 points and their rate is now 6.875%. Factoring in the cost of points, when is the break-even point on their mortgage?

Question

Will give medal and fan!! (:  


Lenny and Lisa have obtained a 30-year, fixed rate mortgage for $675,250 with a 7.25% interest rate. They purchased 3 points and their rate is now 6.875%. Factoring in the cost of points, when is the break-even point on their mortgage?

anonymous · Answer

3 years, 4 months

4 years, 5 months

8 years, 7 months

9 years, 11 months

anonymous · Answer

@dumbcow @hartnn