3 years ago you took out a 30-year fixed rate, fixed payment mortgage for $300,000 to finance the purchase of your home. The loan has an 8% rate of interest and requires the payment of a penalty equal to 3% of the outstanding balance if the loan is repaid at any time prior to maturity. If you will include the prepayment penalties in the amount borrowed in the new mortgage, what is the amount that will need to be borrowed in a new loan if you decide to refinance?
Any help would be appreciated. Thanks
Any help would be appreciated. Thanks