The mortgage on your house is five years old. It required monthly payments of $ 1 comma 422, had an original term of 30 years, and had an interest rate of 8 % (APR). In the intervening five years, interest rates have fallen and so you have decided to refinancelong dashthat is, you will roll over the outstanding balance into a new mortgage. The new mortgage has a 30-year term, requires monthly payments, and has an interest rate of 6.625 % (APR).
