Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a borrower has secured a 30 year, $320,000 loan at

A borrower has secured a 30 year, $320,000 loan at 7%. Ten years later, the...

90.2K

Verified Solution

Question

Finance

A borrower has secured a 30 year, $320,000 loan at 7%. Ten years later, the borrower has the opportunity to refinance with a 20 year mortgage at 6.2%. However, there is an upfront fee of $2500, which will be pain in cash. what is the return on investment (refinance) if the borrower expects to remain in the home for the next 5 years?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Which passage from Stephen Crane's "A Great Mistake" contributes to the setting of the story?A....

Biology
1.2K views

The peptide hormone (protein based hormone) Oxytocin is normally produced in the hypothalamus and released by...

Advance Math
1.2K views

Consider the IVP t2y''?(t2 + 2)y' + (t + 2)y = t3 with y(1) = 0...

Basic Math
1.2K views

The tensile strength of a fiber used in manufacturing cloth is of interest to the purchaser....

Accounting
1.2K views

Northbrook Corporation is preparing a statement of cash flows. The following transaction occurred during the year:...

Biology
1.2K views

As an electron moves closer to oxygen in the electron transport system the electron s...

Statistics
1.2K views

The time needed to complete a math examination is bell-shaped with a mean of 120...

Calculus
1.2K views

Find the component form of the indicated vector Let u 5 2 v 2 6...

Calculus
1.2K views

and Proof K Question 5 GA 3 18 Part of 6 Write the converse inverse...

Accounting
1.2K views

Problem 12-23 (Algo) Comprehensive Problem [LO12-1, LO12-2, LO12-3, LO12-5, LO12-6] Lou...

Accounting
1.2K views

The accounts in the chart of accounts are arranged in a. numerical order. b. chronological...

Accounting
1.2K views

Why did Larry Burkett mean when he said, God does not supply money to satisfy...