Should you refinance the remaining balance

Assignment Help Financial Management

Reference no: EM13723789

You have been living in the house you bought 6 years ago for $250,000. At that time, you took out a loan for 80% of the house at a fixed rate 25-year loan at an annual stated rate of 9.5%. You have just paid off the 72th monthly payment. Interest rates have meanwhile dropped steadily to 6.0% per year, and you think it is finally time to refinance the remaining balance. But there is a catch. The fee to refinance your loan is $4,000. Should you refinance the remaining balance? How much would you save/lose if you decided to refinance?

Reference no: EM13723789

Questions Cloud

Examine the role of enterprise resource planning : Examine the role of Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM). Determine how each system can play a critical role in managing value chains. 1 paragraph and cite

Value and perceived value : Question: Explain how value and perceived value can be used to exceed customer expectations.

Describe what the company should do to help increase sales : Choose a company, and describe the target market for products sold by the company. Briefly describe what the company should do to help increase sales

Should you refinance the remaining balance : You have been living in the house you bought 6 years ago for $250,000. At that time, you took out a loan for 80% of the house at a fixed rate 25-year loan at an annual stated rate of 9.5%. You have just paid off the 72th monthly payment. Interest rat..

Callable bond with an annual coupon rate : Assume that you are considering the purchase of a 11-year, no callable bond with an annual coupon rate of 8.60%. The bond has a face value of $1000, and it makes semi-annual interest payments. If you require an 11.70% yield to maturity on this invest..

Value and perceived value : Question: Explain how value and perceived value can be used to exceed customer expectations.

Allowance for doubtful accounts has a debit balance : Allowance for Doubtful Accounts has a debit balance of $600 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $13,000. Which of the following entries records the pro..

Define the term consumer behavior and deprived consumer : Please define the following terms: Consumer behavior, Consumption, Consumer Behavior Model = Acquiring, Using and discarding products - Demographic Segmentation, Deprived Consumer, Disposable income, Fashion Cycle

User Account

All Pages