Choose the best scenario for refinancing.
You have a current mortgage at 5% and have been approved for a new mortgage at 3.75%. You'll break even on the closing costs in two years, and you don't plan to move for at least five.
You intend to move in about nine months, but you have been approved for a mortgage with an interest rate two whole points lower than your current rate.
Answer: Option 1 ( you have a current mortgage ...... )
Mortgage rates can changes based on the conditions with the borrower which is an ideal scenario for refinancing
3. The correct option is a "You have a current mortgage at 5% and have been approved for a new mortgage at 3.75% you'll break even on the closing costs in two years and you don't plan to move for at least five"
Explanation: Refinancing is an option in which mortgage's interest rate can be changed on the discretion of borrower.
please show calculations. 12) The current monthly mortgage payment is $2,300. If you were to refinance the mortgage, how long it would take in terms of months) to break-even assuming the following: current mortgage balance is $175,000 new mortgage rate is 3.5% 30 years to mature Pre-payment penalty is $0.00 Closing costs are $6,500 •
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