Question
What is your return on investment if you have a chance to refinance your current mortgage of $750,000 with a rate of 5.5% and 30-year
What is your return on investment if you have a chance to refinance your current mortgage of $750,000 with a rate of 5.5% and 30-year amortization after 5 years. Do a non-cash out refinance and your closing costs to refinance is 5% the new amortization is 25 years and the interest rate 3.5%.
What is the rate of return if you are only going to stay for an additional 5 years?
Step by Step Solution
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Step: 1
To calculate the return on investment ROI of refinancing the mortgage we need to compare the total cost of the current mortgage and the new mortgage i...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
