you have purchased a house and have obtained a 30 yr $200000.00 mortgage with an interest rate of 10%. a-What is your annual payment? b Assuming you bough the house on January 1, what is the principal balance after one year? after 10 year? c After four years, motgate rates drop to 8 percent for 30 yera fixed rate mortgate. you still have the old 10 percent mortgage you signed up for four years ago and you plan to live in the house for another five years. The total cost to refinance the house is$3000 including legal fees , closing costs and points. The rate on a five year CD is 6 percent. should you refinance your mortgage or invest the $3,000.00 in a CD? the 6 percent CD rate is your opportunity cost of capital