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Consider a 2 0 - year, $ 1 8 0 , 0 0 0 mortgage with a rate of 6 . 4 percent. Six years

Consider a 20-year, $180,000 mortgage with a rate of 6.4 percent. Six years into the mortgage, rates have fallen to 5.1 percent. Suppose the transaction cost of obtaining a new mortgage is $2,000.
Should the homeowner refinance at the lower rate?
multiple choice
Yes
No
Quantify the effect of the homeowner's decision.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Return to question
30
w mortgage is $2,000.
Should the homeowner refinance at the lower rate?
Yes
Quantify the effect of the homeowner's decision.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places
What is the monthly savings for refinancing while also including / accounting for the transaction cost?

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