After putting 20% down on her $140,000 house, Esmeralda will be borrowing $112,000. The price of 2 points on that loan amount is 2%×$112,000 = $2,240. If Esmeralda applies that amount to the down payment, her loan amount will be $109,760 and her payment will be ... A = P*(r/n)/(1 -(1 +r/n)^(-nt)) A = 109,760*(.0575/12)/(1 -(1 +.0575/12)^-360) A = 640.53