A person purchased a $204,246 home 10 years ago by paying 20% down and signing a 30-year mortgage at 9.6% compounded monthly.

Question

A person purchased a $204,246 home 10 years ago by paying 20% down and signing a 30-year mortgage at 9.6% compounded monthly. Interest rates have dropped and the owner wants to refinance the unpaid balance by signing a new 20-year mortgage at 6.6% compounded monthly. How much interest will refinancing save?

Kunduz · Accepted Answer

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