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Assume you have a 5% 20-year mortgage for $100,000 with now 10 years to maturity (annual...

Assume you have a 5% 20-year mortgage for $100,000
with now 10 years to maturity (annual payments with
exactly one year to the next payment).
• A new mortgage is available at 3.5% with a refi fee of
$3,000 including relevant prepayment penalties.

Should you refinance?

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Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 2 years ago
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