Question

g Todd Foley is applying for a $210,000 mortgage. He can select either a $1,470 monthly payment with no points or a $1,323 payment with 4 points. How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment

Answer 1

57 months

Step-by-step explanation:

Calculation to determine How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly

payments

Number of months to cover cost=(.04 x $210,000)/($1470-$1323)

Number of months to cover cost = $8400/147

Number of months to cover cost =57 months

Therefore the number of many months it will take Todd to cover the cost of the discount points if he takes the lower monthly

payments is 57 months