7 years ago a fixed rate mortgage for $ 100,000 was issued which would fully amortize monthly in 20 years. The contract rate was 8%. Refinancing costs $. 3,000 Now that rates have fallen to 6%. What is the monthly payment? What is the loan balance? What is the Break-even rate for refinancing? BER Is refinancing a good idea?
7 years ago a fixed rate mortgage for $ 100,000 was issued which would fully amortize monthly in 20 years. The contract rate was 8%. Refinancing costs $. 3,000 Now that rates have fallen to 6%. What is the monthly payment? What is the loan balance? What is the Break-even rate for refinancing? BER Is refinancing a good idea?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 1P
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Question
| 7 years ago a fixed rate mortgage for $ 100,000 was issued which would fully amortize monthly in 20 years. |
| The contract rate was 8%. |
| Refinancing costs $. 3,000 |
| Now that rates have fallen to 6%. |
| What is the monthly payment? |
| What is the loan balance? |
| What is the Break-even rate for refinancing? |
| BER |
| Is refinancing a good idea? |
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