Mr. and Mrs. Chavez close on a 30 year home loan for $250,000. The monthly payment with no points is $1,580, but if they buy a point it is $1,560. What might you infer if Mr. and Mrs. Chavez choose not to buy a point?
Answer
A
They plan to sell the house at the end of 5 years.
B
They plan to sell the house at the end of 10 years.
C
They plan to sell the house at the end of 15 years.