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Problem 21-14 Mortgage Prepayments (LO2, CFA2) A homeowner took out a 30-year fixed-rate mortgage of $155,000. The mortgage was taken out 8 years ago
Problem 21-14 Mortgage Prepayments (LO2, CFA2) 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 8.3 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. APR 7.28 %
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
13th edition
1111971633, 978-1111971632
