User Account

All Pages

What is the net benefit of refinancing

Assignment Help Finance Basics
Reference no: EM133074911

You are starting to have second thoughts about moving. After going back and forth for several weeks you decide that you will make a decision based on whether or not you will refinance the house. If you refinance you will stay, if you don't you will move. You can refinance the home with a new interest rate of 2.75% for a 30 year term. You will refinance on the same day you would have closed on the home (so you can use the outstanding loan balance you calculated in #7 here). The cost of refinancing is 5% of the loan amount. Assume you anticipate selling the home (or refinancing again) in 7 years.

What is the net benefit of refinancing? Round to two decimal places.*Hint you are solving for net benefit of refinancing, not solving for NPV (so you do not need a discount rate to answer this question).

Reference no: EM133074911

Questions Cloud

Price of a 4-year par bond paying : The prices of a 1-year 1%-coupon bond, 2-year 2%-coupon bond, 3-year 3%-coupon bond, and 4-year 4%-coupon bond are $98.87, $100, $101.44, and $106.88, respectiv
Streams of incoming information simultaneously : You will suggest a real or imagined work situation where it is important to monitor at least four streams of incoming information simultaneously.
Prepare a departmental income statement : Prepare a departmental income statement showing departmental contribution to common expenses and net income of the firm
What happens in a multi-divisional company : What happens in a multi-divisional company decides to use a companywide WACC to judge projects? Is there a remedy for this?
What is the net benefit of refinancing : You are starting to have second thoughts about moving. After going back and forth for several weeks you decide that you will make a decision based on whether or
What is expected of impact on the stock market : Holding all else constant, what is expected of its impact on the stock market? Back up your assertion using detailed transmission channels.
Calculate the distance to default : Based on the single-factor model, suppose Ki= -2.83, beta=0.5, m=-2.2 Calculate the Distance to Default.
Download monthly data for the last 5 years : For the company that you are assigned, please complete the following: The company is Exxon!
Calculate a percentage return using the formula : For the company that you are assigned, please complete the following:The company is Exxon!

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd