Five years after purchasing your house (15-year, 3.50% loan,…
Five years after purchasing your house (15-year, 3.50% loan, $1,100 monthly payment), mortgage rates have dropped to 2.5%. You currently owe $100,000 on the original mortgage and would like to refinance for the lower rate but keep the same original end date. The cost to refinance is $3,000. What will be the new payment after refinancing?