A borrower has an GH¢8000 loan with the Unicredit Finance Company. The loan is to be repaid over 4 years at j12 = 18%. The contract stipulates a penalty in case of early repayment, equal to 3 months’ payments. Just after the 20th payment, the borrower determines that his local bank would lend him the money at j12 = 13.5%. Should he refinance?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
A borrower has an GH¢8000 loan with the Unicredit Finance Company. The loan is to
be repaid over 4 years at j12 = 18%. The contract stipulates a penalty in case of early
repayment, equal to 3 months’ payments. Just after the 20th payment, the borrower
determines that his local bank would lend him the money at j12 = 13.5%. Should he refinance?
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