7 years ago a fixed rate mortgage for $ 100,000 was issued which would fully amortize monthly in 20 years. The contract rate was 8%. Refinancing costs $. 3,000 Now tha rates have fallen to 6%. What is the monthly payment? What is the loan balance? What is the Break-even rate for refinancing? BER Is refinancing a good idea? Independent of your answer in 1du let's say, you opt for refinancing. If refinancing means a full cash-out, how much will it be? What is the loan value now given the new rate? PV based on new rate Re-financed PV Cash Out Suppose refinancing means maximum reduction in the payment. What is the new payment? New Payment % Reduction Suppose refinancing means maximum reduction in the number of payment. How many payments are left? New remaining Payment original remaining payments