You bought a house a year ago for $250,000, borrowing $200,000 at 12% annual, with semi-annual compounding, on a 25-year loan. Interest rates have…

You bought a house a year ago for $250,000, borrowing $200,000 at 12% annual, with semi-annual compounding, on a 25-year loan. Interest rates have since come down to 9%. You can refinance your mortgage at this new rate.