Consider a 4-year, fixed rate mortgage with an original balance of \\( \\$ 51,000 \\)...
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Consider a 4-year, fixed rate mortgage with an original balance of \\( \\$ 51,000 \\) and an interest rate of \5.1. Suppose right after the month 9 payment has been made, the interest rate declines by \2.2. If closing and transaction fees add up to 1,117 , then does it make sense to refinance the existing mortgage at this point in time with a new 4-year fixed rate mortgage? If your answer is yes (it makes sense to refinance), then answer 1. Otherwise answer 0
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Consider a 4-year, fixed rate mortgage with an original balance of \\( \\$ 51,000 \\) and an interest rate of \5.1. Suppose right after the month 9 payment has been made, the interest rate declines by \2.2. If closing and transaction fees add up to 1,117 , then does it make sense to refinance the existing mortgage at this point in time with a new 4-year fixed rate mortgage? If your answer is yes (it makes sense to refinance), then answer 1. Otherwise answer 0 