(10 Points) You are refinancing your existing mortgage with a new 30 year mortgage. The existing mortgage has a $400,000 outstanding balance so the new loan will be for $400,000. 6.5% APR is the current fair market rate on 30 year monthly pay mortgages. The mortgage company has offered you the opportunity to pay a ?point? (1% of the total amount of the loan) to ?buy down? the interest rate to 6.25% APR. If you plan on staying in the house for five years should you take the offer?
Paper#8556 | Written in 18-Jul-2015Price : $25