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Prepayments ( LO 3 , CFA 1 ) Consider a 2 5 - year, $ 3 5 0 , 0 0 0 mortgage with a

Prepayments (LO3, CFA1) Consider a 25-year, $350,000 mortgage with a rate of 7.25 percent.
Ten years into the mortgage, rates have fallen to 5.4 percent.
What would be the monthly saving to a homeowner from refinancing the outstanding mortgage balance at the lower rate?
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