You borrowed a mortgage of $541000 to buy a new house 3 years ago with an APR of 5.39%. The loan had to be paid with equal monthly payments at the end of each of month after the load was issued. Now that the interest rate has gone dowe, you can refinance your mortgage at 3.35% APR wi similar terms and conditions. If you can refinance the remaining balance (balance after 36 monthly payments) for the remaining term (27 years) of the loan without any additional cost, how much could you save on the total interest payment over the life of the loan ignoring any tax implication?
You borrowed a mortgage of $541000 to buy a new house 3 years ago with an APR of 5.39%. The loan had to be paid with equal monthly payments at the end of each of month after the load was issued. Now that the interest rate has gone dowe, you can refinance your mortgage at 3.35% APR wi similar terms and conditions. If you can refinance the remaining balance (balance after 36 monthly payments) for the remaining term (27 years) of the loan without any additional cost, how much could you save on the total interest payment over the life of the loan ignoring any tax implication?
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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Transcribed Image Text:You borrowed a mortgage of $541000 to buy a new house 3 years ago with an APR of 5.39%. The
loan had to be paid with equal monthly payments at the end of each of month after the load was
issued. Now that the interest rate has gone dowe, you can refinance your mortgage at 3.35% APR with
similar terms and conditions. If you can refinance the remaining balance (balance after 36 monthly
payments) for the remaining term (27 years) of the loan without any additional cost, how much could
you save on the total interest payment over the life of the loan ignoring any tax implication?
O 245315
O 49063
O 147189
O 294378
O 196252
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