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Considering the following information, what is the net benefit if the borrower refinances the loan (benefit analysis)? Current Loan balance: 367,000 Initial loan term: 30

Considering the following information, what is the net benefit if the borrower refinances the loan (benefit analysis)?

Current Loan balance: 367,000

Initial loan term: 30 years

Current Loan interest: 6%

Remaining term on current loan: 21 years

New loan term: 20 years

New loan interest: 3.75%

Cost of refinancing: 5% of the loan amount

Expected holding period: 4 years

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