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Refinance decision: The original loan is for $150,000 with terms 6%, 30 years payable monthly. The...

Refinance decision: The original loan is for $150,000 with terms 6%, 30 years payable monthly. The elapsed time on the original loan is 5 years. The new loan rate is 3.6% which will be held 7 years. The cost of refinancing is $3,000. The opportunity cost is 9%.

A. Prepare a table that calculates the change in monthly payment and change in Loan Balance numbers:

B. Do the Present Value Analysis:

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ekkarill92 answered 2 years ago
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