Mortgage Refinancing You hold a 15 year mortgage with 6% APR (compounded monthly) and monthly payment of $1240. Your mortgage is 60 months old (you have.

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Mortgage Refinancing You hold a 15 year mortgage with 6% APR (compounded monthly) and monthly payment of $1240. Your mortgage is 60 months old (you have just paid your 60 th payment). You have just noticed that mortgage rates have fallen and are now at 4% APR. You are considering whether to refinance your mortgage and role over the outstanding balance into a new 15 year term mortgage at the new rate. (a)What are the required monthly payments on the new mortgage? (b)How much would you be willing to pay in fees to refinance your mortgage? (c)What if your mortgage was 120 months old?

Refinancing

Part (c)

Refinancing Part (c)