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Assume a variable rate mortgage of 500,000 with j12= 4%, amortized over 25 years with monthly payment. The term is 5 years. Now 2 years into the term, the borrower is thinking of refinancing it. How much would be the refinancing costs? Figure out exact number with only using these variables

Assume a variable rate mortgage of 500,000 with j12= 4%, amortized over 25 years with monthly payment. The term is 5 years. Now 2 years into the term, the borrower is thinking of refinancing it. How much would be the refinancing costs? Figure out exact number with only using these variables

Essentials Of Investments
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
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Assume a variable rate mortgage of 500,000 with 124%, amortized over 25 years with monthly payment. The term is 5 years. Now 2 years into the term, the borrower is thinking of refinancing it. How much would be the refinancing costs? Figure out exact number with only using these variables

Assume a variable - rate mortgage of 500,000 with j 12 = 4 %, amortized over 25 years with monthly payment. The term is 5 years. Now 2 years into the term, the borrower is thinking of refinancing it. How much would be the refinancing costs? Figure out exact number with only using these variables
Transcribed Image Text:Assume a variable - rate mortgage of 500,000 with j 12 = 4 %, amortized over 25 years with monthly payment. The term is 5 years. Now 2 years into the term, the borrower is thinking of refinancing it. How much would be the refinancing costs? Figure out exact number with only using these variables
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