Should you refinance your mortgage

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Reference no: EM131859958

Five years ago you took out a 25 year mortgage at 7% for $150,000. Today you can refinance into a 20 year mortgage at 6.85%, but it will cost you $3000 in transaction costs to do so. Should you refinance your mortgage? Why or why not? If you were to refinance how much would it improve (or hurt) your wealth?

Reference no: EM131859958

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