Mary Ann is considering refinancing a mortgage that she borrowed 3 years ago. This 30-year, fixed-rate mortgage had an original loan amount of $600,000 and an interest rate of 6.500%. It has no prepayment penalty. Mary Ann would like to borrow a new mortgage to pay off the balance of the existing loan. The interest rate on a new loan with term to maturity comparable to the remaining term of the existing loan is 5.250%. What is the balance of the existing loan that Mary Ann will refinance if we assume she does not extract any equity?

Mary Ann is considering refinancing a mortgage that she borrowed 3 years ago. This 30-year, fixed-rate mortgage had an original loan amount of $600,000 and an interest rate of 6.500%. It has no prepayment penalty. Mary Ann would like to borrow a new mortgage to pay off the balance of the existing loan. The interest rate on a new loan with term to maturity comparable to the remaining term of the existing loan is 5.250%. What is the balance of the existing loan that Mary Ann will refinance if we assume she does not extract any equity