Mr. X Obtained a 25-year $100,000 mortgage with a 7.5% interest rate. Interest rates fell just after Mr. X  got it. Therefore, I am considering refinancing the $100,000 balance with a 30 yr loan with a 5.5% interest rate. If Mr. X refinances it will cost $3,000 but my payments will be lower. Is it worth it? Any invested cash returns 5%.

Answer rating: 100% (QA)

To determine whether it is worth refinancing the mortgage we need to compare the total cost of the c... View the full answer