You purchase a home and secure a 30 year equal payment loan for $200,000 at a...

 

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You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25% APR compounded monthly. After 5 years the interest rate drops to 4.75% APR compounded monthly. The bank is charging 2 points to originate the new loan. How many months do you need to stay in the house after the refinance to make the refinance a benefit (Round to next month)? 20 months 18 months 30 months 36 months 40 months You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25% APR compounded monthly. After 5 years the interest rate drops to 4.75% APR compounded monthly. The bank is charging 2 points to originate the new loan. How many months do you need to stay in the house after the refinance to make the refinance a benefit (Round to next month)? 20 months 18 months 30 months 36 months 40 months

Answer rating: 100% (QA)

ANS WER You need to stay in the house for 36 months after the ref inance to ... View the full answer