Lamar is looking to refinance his $300,000 mortgage. He has already locked-in a new mortgage at...
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Lamar is looking to refinance his $300,000 mortgage. He has already locked-in a new mortgage at 4.00% APR for the next 360 months at Bank One, and closes on the new mortgage next week. Prior to closing, a competitor bank, Bank Two, announces that Lamar can refinance for monthly payments of $1,400 for 360 months. Switching to the loan at Bank Two will cost Lamar $1,000 today in fees. Should Lamar switch to the Bank Two loan, and how much money will he save/lose by switching in present value terms? O No suitabl Lamar is looking to refinance his $300,000 mortgage. He has already locked-in a new mortgage at 4.00% APR for the next 360 months at Bank One, and closes on the new mortgage next week. Prior to closing, a competitor bank, Bank Two, announces that Lamar can refinance for monthly payments of $1,400 for 360 months. Switching to the loan at Bank Two will cost Lamar $1,000 today in fees. Should Lamar switch to the Bank Two loan, and how much money will he save/lose by switching in present value terms? O No suitabl
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Should Lamar switch to the Bank Two loan Heres how to analyze the situation and decide 1 Calculate t... View the full answer
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
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