Worked Example: Mortgages, Loans, and Repayments
(Suppose you take the new mortgage for 20 years). Taking on a new mortgage costs about 1.5 points in fees – or in other words, you need to pay the mortgage broker fees of 1.5% of the size of the mortgage loan. So here about $39K in fees. Should you refinance? Take a few minutes to work on this in groups and we’ll cover it in class soon ... ................
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