Suppose that interest rates have dropped.  You call your bank and inquire about refinancing at the lower rate.  Suppose that the closing costs on refinancing your home amount to $3,000.  Because of refinancing, your mortgage payment will be reduced by $136.   If you plan on living in your house for three more years, does it make sense for you to refinance?  Why?

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Answer i Number of years to stay aft... View the full answer