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

question 55

Multiple Choice

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

• A)The monthly payment will increase by $98.33.
• B)The monthly payment will decrease by $98.33.
• C)The monthly payment will increase by $343.12.
• D)The monthly payment will decrease by $343.12.
• E)The monthly payment will not change.

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Definitions:

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