Financial Project Research Paper Example | Topics and Well Written Essays - 250 words

Financial Project - Research Paper Example Identify the highest interest rate you could refinance at in order to pay the current balance in 20 years. Determine the interest rate that would require a monthly total payment that is less than your current total payment. In addition, refinancing costs you $2000 up-front in closing costs. Therefore, the highest interest rate that would result in less than the current loan repayments would be 4.50%, where the monthly total will amount paid towards the loan, and the principal will be $695.08, which is less than the current $706.12. However, the closing costs of $2,000 upfront may weigh on the ability to get into a refinancing agreement deal. In order to answer this, you need to look at different interest rates. Know that if you refinance, your minimum monthly payments will be based on a 30-year loan (though you still want to be done in 20 years). Also, refinancing costs you a couple of thousand dollars up front in closing costs. Refinancing this loan has two obvious downsides: the repayment period will increase, and extra expenses will be incurred in terms of closing costs. However, the refinancing will lower the monthly repayment amounts by at least $68.79. For a person in a poor credit position due to the demands of the current loan repayments, the refinancing would be a welcome relief to boost this credit