Mortgage Loan

xc2xa0rnAn investor acquired a thoroughly amortizing mortgage loan 5 yrs

An investor acquired a thoroughly amortizing mortgage loan 5 yrs ago for ,000 at 11 % for 30 yrs. Home loan fees have dropped, so that a thoroughly amortizing twenty five-12 months personal loan can be acquired at ten %. There is no prepayment penalty on the mortgage loan stability of the unique personal loan, but 3 factors will be charged on the new personal loan and other closing costs will be ,000. All payments are
Ought to the borrower refinance if he strategies to have the home for the remaining personal loan time period?
Assume that the investor borrows only an quantity equal to the outstanding stability of the personal loan.
Would your answer to component (
) transform if he prepared to have the home for only five additional
The computations for this issue ought to figure out if the 
charge of the refinance alternative can make perception to refi. 
The investigation and  your conclusions ought to be said in a Word 
doc as solutions to component a and component b. Method the issue as a 
fiscal investigation employing at minimum two of the procedures previously 
described in the textual content and in class. You might use either your 
calculator or excel. 
If you utilize excel, remember to paste 
your benefits into the term doc in structure that is simple to adhere to.


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