A borrower has secured a 30 year, $150,000 loan at 7% with monthly payments. Fifteen years later,

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A borrower has secured a 30 year, $150,000 loan at 7% with monthly payments. Fifteen years later, the borrower has the opportunity to refinance with a fifteen year mortgage at 6%. However, the up front fees, which will be paid in cash, are $2,500.

What is the return on investment if the borrower expects to remain in the home for the next fifteen years?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

Posted Date: Apr 28, 2023 07:24 AM

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A borrower has secured a 30 year, $150,000 loan at 7% with monthly payments. Fifteen years later,

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To calculate the return on investment ROI of refinancing the mortgage we need to compare the total c... View the full answer

Income Tax Fundamentals 2013

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