Eight years ago you financed a new $135,000 house with an 8% down payment and a 30-year mortgage on the rest with annual interest at 6.15% compounded monthly. How much total interest money would you save by refinancing the unpaid balance now for the remaining 22 years at a 5.625% annual rate?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Eight years ago you financed a new $135,000 house with an 8% down payment and a 30-year mortgage on the rest with annual interest at 6.15% compounded monthly. How much total interest money would you save by refinancing the unpaid balance now for the remaining 22 years at a 5.625% annual rate? 

Expert Solution
Given:

Here,

Loan Amount is $135,000

Down Payment is 8%

Time Period of Loan is 30 years

Annual Interest Rate is 6.15%

Remaining Time Period of Loan is 22 years

Refinancing Interest Rate is 5.625%

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