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Business, 14.04.2020 15:54 nikeabrown01

An investor obtained a fully amortizing mortgage five years ago for $175,000 at 11.5% for 30 years. Mortgage rates have dropped so that a fully amortizing 20-year loan can be obtained at 10%. There is no prepayment penalty on the mortgage balance of the original loan, but 3 points will be charged on the new loan and other closing costs will be $3000. All payments are monthly. What is the effective "return" earned by the investor if he refinances

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An investor obtained a fully amortizing mortgage five years ago for $175,000 at 11.5% for 30 years....
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