Question
Ingrid is considering refinancing her mortgage. She currently has 120 payments of $987 left on her fully amortizing loan. A lender is offering her a
Ingrid is considering refinancing her mortgage. She currently has 120 payments of $987 left on her fully amortizing loan. A lender is offering her a new fully amortizing mortgage on the remaining balance for 10 years (also 120 payments) that will have a payment of $870. Ingrid is not planning to ever move from her house. What is the highest refinancing cost today that Ingrid is willing to pay and still choose to refinanse if her discount rate is 8%?
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The Mcgraw Hill 36 Hour Course In Finance For Non Financial Managers
Authors: Robert Cooke
2nd Edition
0071425462, 978-0071425469
