Question: Suppose you take a $ 2 6 2 , 1 7 9 3 0 - year fixed - rate mortgage at 6 . 2 %

Suppose you take a $262,17930-year fixed-rate mortgage at 6.2%,3 discount points, monthly payments. At the end of year 3 you inherit $18,610 from your now-favorite aunt. You decide to apply this $18,610 to the principal balance of your loan.
What is your net interest savings over the life of the loan, assuming the loan is held to its maturity?

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