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Doug and Lynn bought their home three years ago. They have a mortgage payment of $709.96. Interest rates have recently fallen, and they can lower
Doug and Lynn bought their home three years ago. They have a mortgage payment of $709.96. Interest rates have recently fallen, and they can lower their mortgage payments to $579.72 if they refinance. What would their annual savings be if they refinance? They are in a 12% marginal tax rate bracket and have sufficient deductions to itemize (Hint: Consider the reduction in tax savings and assume there are no additional costs for refinancing.)
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