You borrow $330,000 through a 30-year fixed-rate mortgage at an interest rate of 2.5% and a monthly
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You borrow $330,000 through a 30-year fixed-rate mortgage at an interest rate of 2.5% and a monthly payment of $1,303.90. You observe that 6 years after taking out the mortgage, mortgage rates fall to 2.2%. If you have no cash on hand and closing costs on a new mortgage are $3,500, what would be your gain from refinancing?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
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