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 $$155,000.$ The mortgage was taken out $8$ years ago at a rate of $8\mathrm{.}3$

percent. If the homeowner refinances, the charges will be $$2,650.$ 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.

Answer is complete but not entirely correct.

A homeowner took out a $30-$year fixed$-$rate mortgage of $$155,000.$ The mortgage was taken out $8$ years ago at a rate of $8\mathrm{.}3$

percent. If the homeowner refinances, the charges will be $$2,650.$ 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.A homeowner took out a $30-$year fixed$-$rate mortgage of $$155,000.$ The mortgage was taken out $8$ years ago at a rate of $8\mathrm{.}3$ percent. If the homeowner refinances, the charges will be $$2,650.$ 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.