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5. The Cost of Refinancing an Mortgage Three years ago, you bought a house. You took out a $350,000.00 mortgage at 4.75% for 30 years.

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5. The Cost of Refinancing an Mortgage Three years ago, you bought a house. You took out a $350,000.00 mortgage at 4.75% for 30 years. Now that interest rates have fallen (beginning of year 4 of your current mortgage), you are considering refinancing your existing loan with a new 30 year ioan. Your new loan must pay off the remaining balance of your old loan plus pay for all of the fees, associated with the new loan. In addition to all of the standard fees, you choose to spend 1% in points to buy down your interest rate to 2.5%. All refinancing fees $5,000 Points 1% How long will it take to payback the cost of refinancing your mortgage? What are the total savings over the life of the loan? Submit your spreadsheet along with a brief discussion of your findings in the appropriate D2L dropbox. You may include your discussion of finding in your spreadsheet along with the calculations, 5. The Cost of Refinancing an Mortgage Three years ago, you bought a house. You took out a $350,000.00 mortgage at 4.75% for 30 years. Now that interest rates have fallen (beginning of year 4 of your current mortgage), you are considering refinancing your existing loan with a new 30 year ioan. Your new loan must pay off the remaining balance of your old loan plus pay for all of the fees, associated with the new loan. In addition to all of the standard fees, you choose to spend 1% in points to buy down your interest rate to 2.5%. All refinancing fees $5,000 Points 1% How long will it take to payback the cost of refinancing your mortgage? What are the total savings over the life of the loan? Submit your spreadsheet along with a brief discussion of your findings in the appropriate D2L dropbox. You may include your discussion of finding in your spreadsheet along with the calculations

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