Without buying points, a monthly mortgage payment will be $958. Buying 1 point at closing would reduce the pay

Question

Without buying points, a monthly mortgage payment will be $958. Buying 1 point at closing would reduce the payment to $948.75.  If each point costs $1000.00, rounded to the nearest year, how long would it take to break even by buying 1 point?

a.
7 years
b.
8 years
c.
9 years
d.
10 years

GPT-5 mini · Answer

Monthly savings = 958 − 948.75 = $9.25.  
Break-even time = 1000 / 9.25 ≈ 108.11 months ≈ 9.01 years.  
Rounded to the nearest year: 9 years.

Answer: c. 9 years.

Without buying points, a monthly mortgage payment will be $958. Buying 1 point at closing would reduce the payment to $948.75. If each point costs $1000.00, rounded to the nearest year, how long would it take to break even by buying 1 point?

a.
7 years
b.
8 years
c.
9 years
d.
10 years

All Answers 1

Submit Your Answer

Without buying points, a monthly mortgage payment will be $958. Buying 1 point at closing would reduce the payment to $948.75. If each point costs $1000.00, rounded to the nearest year, how long would it take to break even by buying 1 point? a. 7 years b. 8 years c. 9 years d. 10 years

All Answers 1

Submit Your Answer

Without buying points, a monthly mortgage payment will be $958. Buying 1 point at closing would reduce the payment to $948.75. If each point costs $1000.00, rounded to the nearest year, how long would it take to break even by buying 1 point?

a.
7 years
b.
8 years
c.
9 years
d.
10 years