Consider a 30-year, $230,000 mortgage with a rate of 6.72 percent. Five years into the mortgage, rates

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Consider a 30-year, $230,000 mortgage with a rate of 6.72 percent. Five years into the mortgage, rates have fallen to 6.18 percent. Suppose the transaction cost of obtaining a new mortgage is $2,500. Should the homeowner refinance at the lower rate?

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Fundamentals of Investments Valuation and Management

ISBN: 978-0077283292

5th edition

Authors: Bradford D. Jordan, Thomas W. Miller

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Question Posted: Sep 19, 2012 05:12 AM

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Consider a 30-year, $230,000 mortgage with a rate of 6.72 percent. Five years into the mortgage, rates

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Fundamentals of Investments Valuation and Management

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