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Posted on Sep 07, 2024

Bob took out a mortgage of $ 3 0 0 , 0 0 0 five years ago. The mortgage was a constant payment 3 0

Bob took out a mortgage of $

300, 000

five years ago. The mortgage was a constant payment

30 -

year amortizing,

10 -

year maturity balloon mortgage with an interest rate of

6 % .

The market interest rate has

decreased and Bob could refinance the mortgage at an interest rate of

5 % .

The cost of refinancing is $

5, 000 .

Should Bob refinance his mortgage?

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