You can get a same 30-year mortgage of $130,000 at 3.6% interest by paying 2 points at closing. How much would you have to come up with to cover the 2 points
1. Find the new monthly payments?
2. How much are you saving each month for the new monthly payment?
3. How long will it take to recover the amount you had to come up with to pay the 2 points? What does this mean in terms of how long you should plan to stay in this home?