80 5 Loans and Risks 5.2. Hugh Kendrick has a 30-year home loan for $100, years, he wishes to pay off the loan in order to refinance at a loan has a prepayment penalty of six balance of the loan. 1 home loan for $100,000 at 7%. After 15 n in order to refinance at a lower rate. The payment penalty of six months interest on 80% of the remaining (a) How much is the remaining balance on Hugh's loan? (D) II Hugh can refinance with a 15-year loan at 6% with no other costs, then should he do it? (c) If Hugh can refinance the loan over 15 years with no other costs, then what interest rate would make it worthwhile? LO 07