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Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 7% compounded monthly, with monthly payments. After 5 years
Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 7% compounded monthly, with monthly payments.
After 5 years of payments, Ann can refinance the balance into a 25 year Fully Amortizing FRM at an annual interest rate of 5.25% compounded monthly, with monthly payments.
If Ann refinances into this 25 year loan, what will be her monthly savings on her mortgage payment?
| A) | $1,012.21 |
| B) | $1,455.04 |
| C) | $5,197.98 |
| D) | $6,653.02 |
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