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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%.
| 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? | |||||||||
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
17th Edition
0357714482, 9780357714485
