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Your parents bought a home 15 years ago and have a mortgage rate of 9% on their $150,000 mortgage with a 30-year term. Today they
Your parents bought a home 15 years ago and have a mortgage rate of 9% on their $150,000 mortgage with a 30-year term. Today they could refinance into a new 15-year mortgage at a rate of 7%. Refinancing will cost $2500.
a. Should they refinance if they plan to stay in the home for an additional 15 years?
b. Should they refinance if they may only stay in the home for 5 more years?
PLEASE USE FINANCIAL CALCULATOR. THANK YOU
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Key Financial Market Concepts
Authors: Bob Steiner
2nd Edition
0273750127, 978-0273750123
