• Example 2

nTwo years ago, you obtained a 30-year mortgage of $200,000 with interest rate 6.5%

nNow you have found another lender who will refinance the current outstanding loan balance plus all the costs associated with the new loan at 4.5% with monthly payments for 30 years. The new lender will charge 3 points on the loan with $2,000 refi. cost.

Questions:

1. What is your new loan amount if you choose to refinance?
2. What is your monthly payment for the new loan?
3. What is the effective cost of your new loan if you hold the loan for 30 years?

Please provide answer by using BA II Plus Calculator