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Assume a variable - rate mortgage of 5 0 0 , 0 0 0 with j 1 2 = 4 % , amortized over 2

Assume a variable-rate mortgage of 500,000 with j12=4%, amortized over 25 years
with monthly payment. The term is 5 years. Now 2 years into the term, the borrower is thinking
of refinancing it. How much would be the refinancing costs?

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