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17. What is the net benefit (loss) of the borrowers decision to refinance today given the following information and that she intends to move in
17. What is the net benefit (loss) of the borrowers decision to refinance today given the following information and that she intends to move in 5 years?
| Current loan closing costs: 2 points | New loan type: 15-year fixed rate |
| Current loan original balance: $350,000 | New loan interest: 5.00% |
| Current loan balance: $263,993.63 | New loan total fees: 2.5 points |
| Current loan interest rate: 7.5% | Individual discount rate: 6% |
| Current loan payment: $2,447.25 | Income Tax Rate: 10% |
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
4th Edition
0077262379, 978-0077262372
