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t a lower rate which in turn lowers the borowers monthly pymt which starts at the beginning of next month. Suppose you can save $50 in your monthly pymt if you pay $5000 to by interest rate down at the transaction. Assume that the monthly IR is .75% and compounding is made monthly. Do you choose to pay $5000 if
A. your mortgage is a 30-year loan?
B. your mortgage is a 15-year loan?