Assuming you take the refinance using same discount rate

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Reference no: EM131554187

What is the net benefit (loss) of the borrower’s decision to refinance today given the following information and that she intends to move in 5 years? How long will it take you to breakeven assuming you take the refinance using the same discount rate ?

Current loan closing costs:

New loan type: 15-year fixed rate

Current loan original balance: $350,000

New loan interest: 5.00%

Current loan balance: $263,993.63

New loan total fees: 2.5 points

Current loan interest rate: 7.5%

Individual discount rate: 6%

Current loan payment: $2,447.25

Income Tax Rate: 10%

Reference no: EM131554187

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