A borrower plans to refinance their mortgage to obtain a lower interest rate. The mortgage monthly payment is reduced by $76 a month. The closing costs for refinancing will be $2,500. How long will it take them to recover the cost of refinancing? In other words, what is the breakeven point in months? Hint: Round up to the next month. Give your answer in months, not years. In the second scenario, the same family decides to refinance after seven years. In this scenario they will pay $3,496 per month for the first 7 years, then refinance to a 5.5%,15-year fixed loan and pay $2,606 per month for the last 15 years. The closing costs for the refinance are $2,000. Hint: You only need the numbers presented here to solve this problem. Write out your work for partial credit consideration. Be sure to include the $2,000 refinance fee as part of the calculation. How much will the family save by refinancing to a 15 year loan with a lower rate after seven years? Scenario 1: In the first scenario, a family financed a $500,000 home loan with a 30 -year fixed rate loan with a 7.5% interest rate. The mortgage payment (principal and interest only) is $3,496. per month for 30 years. Scenario 2: In the second scenario, the same family decides to refinance after seven years. In this scenario they will pay $3,496 per month for the first 7 years, then - Interest rate on a 30-year fixed loan with one point: 6.25% - Monthly mortgage payment: $2,770.73 To purchase the point you will pay $4,500. How long until you break-even on the point? Give your answer in months and round UP to the next month. Hint: All of the information you need is in the question. You will not use the HSH calculator for this question. When interest rates lower in the general marketplace, existing mortgage holders will sometimes refinance to a lower rate. You should learn about refinancing a mortgage in the module before attempting this question. How much will the family save by refinancing to a 15 year loan with a lower rate after seven years? Scenario 1: In the first scenario, a family financed a $500,000 home loan with a 30 -year fixed rate loan with a 7.5% In this question you will calculate the breakeven poir for the purchase of one point on the following loan: Option 1: Loan amount: $450,000 - Interest rate on a 30-year fixed loan with zero points: 6.5% - Monthly mortgage payment: $2,844.31 Option 2: Loan amount: $450,000 - Interest rate on a 30-year fixed loan with one point: 6.25% - Mnnthlv mnrtoaoe navment. $277073 A borrower plans to refinance their mortgage to obtain a lower interest rate. The mortgage monthly payment is reduced by $76 a month. The closing costs for refinancing will be $2,500. How long will it take them to recover the cost of refinancing? In other words, what is the breakeven point in months? Hint: Round up to the next month. Give your answer in months, not years. In the second scenario, the same family decides to refinance after seven years. In this scenario they will pay $3,496 per month for the first 7 years, then refinance to a 5.5%,15-year fixed loan and pay $2,606 per month for the last 15 years. The closing costs for the refinance are $2,000. Hint: You only need the numbers presented here to solve this problem. Write out your work for partial credit consideration. Be sure to include the $2,000 refinance fee as part of the calculation. How much will the family save by refinancing to a 15 year loan with a lower rate after seven years? Scenario 1: In the first scenario, a family financed a $500,000 home loan with a 30 -year fixed rate loan with a 7.5% interest rate. The mortgage payment (principal and interest only) is $3,496. per month for 30 years. Scenario 2: In the second scenario, the same family decides to refinance after seven years. In this scenario they will pay $3,496 per month for the first 7 years, then - Interest rate on a 30-year fixed loan with one point: 6.25% - Monthly mortgage payment: $2,770.73 To purchase the point you will pay $4,500. How long until you break-even on the point? Give your answer in months and round UP to the next month. Hint: All of the information you need is in the question. You will not use the HSH calculator for this question. When interest rates lower in the general marketplace, existing mortgage holders will sometimes refinance to a lower rate. You should learn about refinancing a mortgage in the module before attempting this question. How much will the family save by refinancing to a 15 year loan with a lower rate after seven years? Scenario 1: In the first scenario, a family financed a $500,000 home loan with a 30 -year fixed rate loan with a 7.5% In this question you will calculate the breakeven poir for the purchase of one point on the following loan: Option 1: Loan amount: $450,000 - Interest rate on a 30-year fixed loan with zero points: 6.5% - Monthly mortgage payment: $2,844.31 Option 2: Loan amount: $450,000 - Interest rate on a 30-year fixed loan with one point: 6.25% - Mnnthlv mnrtoaoe navment. $277073