Linda wishes to borrow the $285,000 that she still owes on her apartment over 20 years. Linda has had the following interest rates and loan establishment fees quoted to her (repayments will be made monthly): 3.21% per annum compounded monthly, application and processing fee $450; 3.17% per annum compounded monthly, application and processing fee $750; and 2.95% per annum compounded monthly, application and processing fee $1,050. As the loan to value ratio is low at approximately 39 per cent, no loan insurance will be required.

Q: Given her current annual mortgage repayments are $19,000, is this loan a good (i.e., cash flow improving) alternative to Lindas existing mortgage?