Suppose that 5 yrs into the mortgage interest rates drop to, Financial Management

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Suppose that 5 yrs into the mortgage interest rates drop to

You plan to make a $50,000 down payment and take a $400,000 30-year mortgage in order to acquire your first home, which is currently on the market for $450,000. Payments are due at the end of every month.

Suppose that 5 yrs into the mortgage interest rates drop to 3% and you decide to refinance your mortgage. Exactly how much do you owe the bank at that point?

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Financial Management: Suppose that 5 yrs into the mortgage interest rates drop to

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Financial Management: Suppose that 5 yrs into the mortgage interest rates drop to

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