You apply for a mortgage loan on a $350,000 condo using 85% loar lue. Going interest rates are 4.25%, but after thoroughly surfing the net, you find der to grant you a loan at 3.75%. and jump on it. It's a 30-year loan paid mont w much cash flow would you save during the first 5 years of the loan now that yo und the lower interest rate? (Round to the nearest dollar)

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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28)
You apply for a mortgage loan on a $350,000 condo using 85% loan-to-
value. Going interest rates are 4.25%, but after thoroughly surfing the net, you find a
lender to grant you a loan at 3.75%. and jump on it. It's a 30-year loan paid monthly.
How much cash flow would you save during the first 5 years of the loan now that you've
found the lower interest rate? (Round to the nearest dollar)
Transcribed Image Text:28) You apply for a mortgage loan on a $350,000 condo using 85% loan-to- value. Going interest rates are 4.25%, but after thoroughly surfing the net, you find a lender to grant you a loan at 3.75%. and jump on it. It's a 30-year loan paid monthly. How much cash flow would you save during the first 5 years of the loan now that you've found the lower interest rate? (Round to the nearest dollar)
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