You purchase a house for 200000 by putting 10 down and


You purchase a house for $200,000 by putting 10% down and taking a 15-year loan for the balance. The APR (annual percentage rate) of the loan is 6%. After 5 years, you can refinance your loan at 4.8% for a fee of $2,000. To the nearest tenth of a year, how many more years must you live in the house for this refinancing option to become economically attractive? Your MARR is 10%. (NOTE: You do not have to consider any tax implications for this problem, but do recall that in reality, the interest you pay on a mortgage is tax deductible.)

Number of years _____________

Request for Solution File

Ask an Expert for Answer!!
Business Economics: You purchase a house for 200000 by putting 10 down and
Reference No:- TGS01115021

Expected delivery within 24 Hours