Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bill had a standard mortgage with principle of $80,000 created 5 years ago. The mortgage rate is 7%. Currently he can receive a rate of
Bill had a standard mortgage with principle of $80,000 created 5 years ago. The mortgage rate is 7%. Currently he can receive a rate of 3.8% with 2 discount points. To prepay the original mortgage, he needs to pay 3% penalty.
As a financial consultant, please help him to make a decision support your suggestion with calculation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started