Considering the following information. Original amount of th…
Considering the following information. Original amount of the existing loan: $600,000Term of the original mortgage: 30 yearsContract interest rate on existing mortgage: 7.50%Current loan mortgage payment: $4,195.29Remaining term on current mortgage: 25 yearsCurrent loan balance on existing mortgage that would be refinanced: $567,704.62Contract interest rate on new (refinanced) mortgage: 6.0%Loan term on new (refinanced) mortgage: 25 yearsCost of refinancing: 3% of the current $567,704.62 loan balance Assume the borrower will stay in the house the next 25 and not consider refinancing again.Assume that the opportunity cost (discount rate) is the interest rate on the new loan (6.0%).What is the net present value (NPV) of refinancing?
Read DetailsConsidering the following information. Original amount of th…
Considering the following information. Original amount of the existing loan: $600,000Term of the original mortgage: 30 yearsContract interest rate on existing mortgage: 7.50%Current loan mortgage payment: $4,195.29Remaining term on current mortgage: 25 yearsCurrent loan balance on existing mortgage that would be refinanced: $567,704.62Contract interest rate on new (refinanced) mortgage: 6.0%Loan term on new (refinanced) mortgage: 25 yearsCost of refinancing: 3% of the current $567,704.62 loan balance What is the payback period in months associated with refinancing today?
Read DetailsThree owners of a property have identical rights and obligat…
Three owners of a property have identical rights and obligations but unequal percentage ownership in a property. They may sell, transfer, or mortgage their ownership interest without the consent of the others and they may pass on their interest at death to their chosen heirs. This type of ownership is typically known as
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