A borrower has secured a 30 year 120000 loan at 7 fifteen, Ask an Expert

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A borrower has secured a 30 year, $120,000 loan at 7%. Fifteen years later the borrower has the opportunity to refinance with a 15- year mortgage at 6%. The cost of refinancing which will be paid upfront in cash is $5,000.

a) Should the borrower refinance?

b) Should the borrower refinance if s/he expects to remain in the home only 5 years?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92724956

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