Five Years Ago You Took Out a 30-Year Mortgage with an APR

question 70

Multiple Choice

Five years ago you took out a 30-year mortgage with an APR of 6.5% for $200,000. If you were torefinance the mortgage today for 20 years at an APR of 4.25%, how much would your monthly payment change by?

• A) The monthly payment will decrease by $104.79
• B) The monthly payment will increase by $343.12.
• C) The monthly payment will decrease by $343.12.
• D) The monthly payment will increase by $104.79.

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