 Localization of Ext over a Noetherian ring

Over a Noetherian ring, a finitely generated module $N$ has a free resolution with every term finitely generated. Hom from a finite free module commutes with localization, and exactness of localization commutes with cohomology. Thus the displayed isomorphism holds for every $i\ge 0$ and arbitrary $M$. The finiteness condition is on the first argument; the second need not be finitely generated.