In July 2006, Forrest purchased a town house at $325,000 and paid 25% down. The mortgage that he obtained is a 30-year fixed-rate with an annual percentage interest rate of 5.75%. In July 2011, due to a fall in interest rates, he decided to refinance and obtained a mortgage at a 5.1% annual interest rate for 25 years. After he refinanced, how much is the payment reduced assuming that all payments were made on time?

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The Answer of In July 2006, Forrest purchased a town house at $325,000 and paid 25% down. The mortgage that he obtained is a 30-year fixed-rate with an annual percentage interest rate of 5.75%. In July 2011, due to a fall in interest rates, he decided to refinance and obtained a mortgage at a 5.1% annual interest rate for 25 years. After he refinanced, how much is the payment reduced assuming that all payments were made on time?

In July 2006, Forrest Purchased a Town House at $325,000