Suppose a homeowner purchased a home for $500,000, with 100% financing at 5 percent for 15 years. Payments are made yearly at the end of each year. It seems to me that the payments at the end of each year would be $48,171, or at least close to that. Some present value factors are: Present value of an annuity periods 4% 5% 14 10.5631 9.8986 15 11.1184 10.3797 After one payment, the owner has the opportunity to refinance the principal at 4% for 14 years. The refinancing result in lower payments. How much will the new payments be when the homeowner refinances at 4% after the first payment on the original loan