Question
Borrower Joe has an existing loan that requires 15 more years of monthly payments of $1,040 . He is considering refinancing the loan balance of
Borrower Joe has an existing loan that requires 15 more years of monthly payments of $1,040 . He is considering refinancing the loan balance of $117,095.08 with a new loan at the current market rate of 5.675% for 15-year loans . Both the old loan and the new loan require 2 points plus $500 in origination fees. If Joe chooses to refinance his existing loan with the new loan, what is the yield on his investment of the costs of refinancing?
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Fundamental Accounting Principles
Authors: Larson Kermit, Tilly Jensen
Volume I, 14th Canadian Edition
71051503, 978-1259066511, 1259066517, 978-0071051507
