Real Estate Math
A buyer wants to know how long it will take to recoup $6,000 in discount points if the points reduce their monthly payment by $120. What is the break-even period?
A40 months
B48 months
C50 months✓ Correct
D60 months
Explanation
Break-even = Cost of points ÷ Monthly savings = $6,000 ÷ $120 = 50 months. If the buyer plans to stay in the home longer than 50 months, paying points makes economic sense.
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