Problem $21-14$ Mortgage Prepayments $($LO$2,$ CFA$2)$ Problem $21-14$ Mortgage Prepayments $($LO$2,$ CFA$2)$

A homeowner took out a $30-$year fixed$-$rate mortgage of $$165,000.$ The mortgage was taken out $10$ years ago at a rate of $8\mathrm{.}1$ percent. If the

homeowher refinances, the charges will be $$2,750.$ What is the highest interest rate at which it would be beneficial to refinance the

mortgage?

Note: Do not round Imtermedlate calculatlons. Enter your answer as a percent rouncled to $2$ clec Imal places.

APR

A homeowner took out a $30-$year fixed$-$rate mortgage of $$165,000.$ The mortgage was taken out $10$ years ago at a rate of $8\mathrm{.}1$ percent. If the homeowner refinances, the charges will be $$2,750.$ What is the highest interest rate at which it would be beneficial to refinance the mortgage?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.