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5. Consider a 4-year, fixed rate mortgage with an original balance of $50,000 and an interest rate of 4.6%. Suppose right after the month 6
5. Consider a 4-year, fixed rate mortgage with an original balance of $50,000 and an interest rate of 4.6%. Suppose right after the month 6 payment has been made, the interest rate declines by 1.9%. If closing and transaction fees add up to 863, then does it make sense to refinance the existing mortgage at this point in time with a new 4-year fixed rate mortgage?
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