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Your monthly payment is $2,500, the mortgage rate is 8% and there are 100 payments remaining. Suppose rate drops and you can refinance your loan
Your monthly payment is $2,500, the mortgage rate is 8% and there are 100 payments remaining. Suppose rate drops and you can refinance your loan at 7%. The refinancing fee is $5,000. Assume you continue to make the same monthly payments and maturity term, how much is saving, in balance, if you refinance, round to nearest cents?
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