Use 15% as tax rate

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You are trying to decide whether or not to refinance given the following information: Current Loan: o $2,000,000 o 7% o 30 yr (amortization) Issued 10 yrs ago (20 yrs left) New Loan: o 5.5% o 30 yr (amortization) o $2000 in closing costs o 1 point o If you do not refinance, then you would invest the fees in the stock market @ 9% annual return. Should you refinance? Explain why or why not. Show each step and all calculations to receive full credit! You are trying to decide whether or not to refinance given the following information: Current Loan: o $2,000,000 o 7% o 30 yr (amortization) Issued 10 yrs ago (20 yrs left) New Loan: o 5.5% o 30 yr (amortization) o $2000 in closing costs o 1 point o If you do not refinance, then you would invest the fees in the stock market @ 9% annual return. Should you refinance? Explain why or why not. Show each step and all calculations to receive full credit