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?
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
Section: Chapter Questions
Problem 1PS
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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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