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Assume you bought a house 10 years ago when interest rate was 4%. Now, you have a mortgage balance of $160,000 with 20 years remaining.

  1. Assume you bought a house 10 years ago when interest rate was 4%. Now, you have a mortgage balance of $160,000 with 20 years remaining. A mortgage broker approaches you and offers you to refinance at 3.0% rate for 20 year mortgage. The closing costs will be $4,500. Will you refinance? Show calculations.

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