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You are considering the following options on a $250,000 mortgage: 1) A 15-year 3% fixed-rate; 0...

You are considering the following options on a $250,000 mortgage:

1) A 15-year 3% fixed-rate; 0 points

2) A 15-year 2% fixed rate with 2 points

What is the net present value of paying the points if you plan to keep the mortgage for the full 15 years? Use the 2% interest rate to discount the monthly savings.

$13,287.24

$10,000

$0

$18,287.24

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