Mr. Nezir refinances his existing mortgage (30 years, $ 275,000, 4.00% interest) at 2.00% interest for 15 years. How much does his mortgage payment change by? Group of answer choices Stays the same Decreases by $ 43, 536.81 Decreases by $456.76 Increases by $456.76 Madame Blueberry has a mortgage loan of $200,000 for 30 years at 4.25% annual interest. If she refinances the $200,000 for 15 years at 2.25% annual interest, how much will she SAVE (total) in interest over the life of the loan? Group of answer choices $0.00 None $ 154, 196.72 $118,366.20 $35, 830.52
Mr. Nezir refinances his existing mortgage (30 years, $ 275,000, 4.00% interest) at 2.00% interest for 15 years. How much does his mortgage payment change by? Group of answer choices Stays the same Decreases by $ 43, 536.81 Decreases by $456.76 Increases by $456.76 Madame Blueberry has a mortgage loan of $200,000 for 30 years at 4.25% annual interest. If she refinances the $200,000 for 15 years at 2.25% annual interest, how much will she SAVE (total) in interest over the life of the loan? Group of answer choices $0.00 None $ 154, 196.72 $118,366.20 $35, 830.52
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 24PROB
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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