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Prepayments ( LO 3 , CFA 1 ) Consider a 2 5 - year, $ 3 5 0 , 0 0 0 mortgage with a
Prepayments LO CFA Consider a year, $ mortgage with a rate of percent.
Ten years into the mortgage, rates have fallen to percent.
What would be the monthly saving to a homeowner from refinancing the outstanding mortgage balance at the lower rate?
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