Consider a 30-year, $230,000 mortgage with a rate of 6.90 percent. Five years into the mortgage, rates
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Consider a 30-year, $230,000 mortgage with a rate of 6.90 percent. Five years into the mortgage, rates have fallen to 5.70 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: 978-0078115660
7th edition
Authors: Bradford Jordan, Thomas Miller
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