Now, assume that Roger and Vanessa have bought the home, using Loan A.Fifteen years have passed, and interest rate for a 15 year fixed is now 4.6%.Closing costs are $1,100, including loan origination fees.The current loan balance is $93,811.The home appraises at $190,000.

21.If they re-finance, what is their new payment?How many months until they recover their closing costs?

22.Should they re-finance?

23.Suppose they need more money for home improvements.How much money absolute maximum could they borrow with a

Home equity loan?

24.Name several factors that might make you prefer borrowing with an ARM instead of a fixed-rate loan.