What is the payback period for the lower priced mortgage
Problem
Frank and Carole have to decide between a 5% mortgage and a 4.25% mortgage with 1 pre-paid point. The loan value is $175,000 and both are conventional 30-year fixed rate mortgages. What is the payback period for the lower priced mortgage?
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The loan value is $175,000 and both are conventional 30-year fixed rate mortgages. What is the payback period for the lower priced mortgage?
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