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

Financial Project - Research Paper ExampleIdentify the highest interest rate you could refinance at in order to compensation the current balance in 20 years. Determine the interest rate that would require a monthly gibe payment that is less than your current total payment. In addition, refinancing costs you $2000 up-front in resolution costs.Therefore, the highest interest rate that would result in less than the current loan repayments would be 4.50%, where the monthly total leave behind 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 overhear 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 c losing 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 cod to the demands of the current loan repayments, the refinancing would be a welcome relief to boost this credit