Question

A borrower has secured a 30 year, $150,000 loan at 7% with monthly payments. Fifteen years later, the borrower has the opportunity to refinance with a fifteen year mortgage at 6%. However, the up front fees, which will be paid in cash, are $2,500. What is the return on investment if the borrower expects to remain in the home for the next fifteen years?

A) 6.00%

B) 13.00%

C) 22.62%

D) 28.89%

Answer

This answer is hidden. It contains 19 characters.