Question

You have been living in the house you bought 9 years ago for $400,000. at that time, you took out a loan for 80% of the house at a fixed rate 20-year loan at an annual stated rate of 7.5%. you have just paid off the 108th monthly payment. interest rates have meanwhile dropped steadily to 4.5% per year, and you think it is finally time to refinance the remaining balance over the residual loan life. but there is a catch. the fee to refinance your loan is $4,000. should you refinance the remaining balance? how much would you save/lose if you decided to refinance?

Answer 1

nice question but not of my level