1. Considering the following information,

Original amount of the existing loan: $300,000

Term of the original mortgage: 15 years

Contract interest rate on existing mortgage: 7%

Current loan mortgage payment: $2,696.48

Remaining term on current mortgage: 10 years

Current loan balance on existing mortgage that would be refinanced: $232,238.41

Contract interest rate on new (refinanced) mortgage: 5.5%

Loan term on new (refinanced) mortgage: 10 years

New loan mortgage payment: $2,520.40

Cost of refinancing: 3% of the current $232,238.41 loan balance

What is the payback period in months associated with refinancing?

A) 120 months

B) 25.2 months

C) None of the selections is within one month of the correct answer

D) 43.2 months

E) 39.6 months

PLEASE HELP!!

Considering the following information. Original amount of the existing loan: $300,000 Term of the original mortgage: 15 years Contract interest rate on existing mortgage: 7% Current loan mortgage payment: $2.696.48 Remaining term on current mortgage: 10 years Current loan balance on existing mortgage that would be refinanced: $232,238.41 Contract interest rate on new (refinanced) mortgage: 5.5% Loan term on new (refinanced) mortgage: 10 years New loan mortgage payment: $2,520.40 Cost of refinancing: 3% of the current $232,238.41 loan balance What is the payback period in months associated with refinancing? 120 months 25.2 months None of the selections is withing one month of the correct answer 43.2 months 39.6 months