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2 2 . Considering the following information, what is the net benefit of refinancing the loan? Expected holding period: 5 years Current loan balance: $

22. Considering the following information, what is the net benefit of refinancing the loan?
Expected holding period: 5 years
Current loan balance: $325,000
Current loan interest: 7.50%
Current loan mortgage payment: $3,012.79
Remaining term on the current mortgage:15 years
New loan interest: 5.75%
New loan mortgage payment: $2,698.83
New loan term: 15 years
Cost of refinancing: $9,750
Assume that the opportunity cost is the interest rate on the new loan (5.75%)

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