Question
A borrower took a loan 5 years ago of usd 80,000 at 15% per annum payable monthly for 30 years .The current rate is 14%
A borrower took a loan 5 years ago of usd 80,000 at 15% per annum payable monthly for 30 years .The current rate is 14% per annum payable monthly for 25 years .If he refinances, the new lender will charge usd 2525 for loan origination and existing lender 2% penalty on the amount prepaid.Should the borrower refinance?
Calculate manually showing your work
Loan balance after 5years -78976.88
PMT 1011.56
Value of a mortgage 80000
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Financial And Accounting Principles In Islamic Finance
Authors: Samir Alamad
1st Edition
3030162982, 9783030162986
