Answer to Question #98608 in Finance for Maryam

Question #98608
Sarah is looking to refinance her loan because rates have gone down since she has taken the loan 5 years ago. She started with a 30-year fixed-rate mortgage of $276,000 at an annual rate of 7.30%. She has to make monthly payments. She can now get a 25-year fixed-rate loan at an annual rate of 4.30% on the remaining balance of her initial loan. This loan also requires monthly payments. In order to re-finance, Sarah will need to pay closing costs of $3,700. These costs are out of pocket and cannot be rolled into the new loan. How much will refinancing save Sarah? or What is the NPV of the refinancing decision?)
1
Expert's answer
2019-11-18T10:10:24-0500
Dear Maryam , your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS
paypal