The cost of refinancing a mortgage loan is the loan's origination fee and other bank fees (e.g. appraisal, title check). Lets assume the origination fee of the 27 year FRM is 1% of the loan amount and the other fees are $800. Using the loan information from the previous problem, would you recommend to the homeowner to refinance based on the interest savings and costs. Explain in DETAIL what the homeowner needs to consider.

Answer rating: 100% (QA)

To determine whether refinancing a mortgage loan is a good decision the homeowner needs to consider ... View the full answer