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Mathematics, 24.04.2020 08:56, Mlmyers81
Howard must decide if he will purchase discount points for his mortgage. Two discount points which cost 2% of the mortgage amount will result in a 0.5% decrease in the interest rate. The terms of the mortgage are shown below. Howard's Mortgage $423,000 30 year fixed 5% annual rate 0 discount points M = $2,270.76 4.5% annual rate 2 discount points M = $2,143.28 Howard plans to stay in his house for about five years. Should Howard purchase the two discount points? Explain your reasoning.
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