James and Amy have decided to buy a new home with a loan of 240000 they are going to buy down the quoted interest rate of 3.75 to 3.5 each point costs 1% of the loan amount and gives a 0.125% rate deduction their monthly payment will drop from 1111 per month to 1078 per month how long will it take for cost of points to be recovered by the savings in the monthly mortgage payment