Question

# Comparing a 4% 30 year mortgage with no points and a 3.75% 30-year

mortgage with one point, if the buyer expects to remain in the house for about 4 years, then

the no points mortgage is the better choice

the one point mortgage is the better choice

Answer & Explanation

Solved by verified expert

the one point mortgage is the better choice

Step-by-step explanation

Buying mortgage points when you close can reduce the interest rate, will help in reducing the monthly payments.