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Considering the following information, what is the net benefit if the borrower refinances the loan (benefit analysis)? Initial Loan balance: 600,000 Initial loan term: 30

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

Initial Loan balance: 600,000

Initial loan term: 30 years

Current Loan interest: 5.25%

Remaining term on current loan: 15 years

New loan term: 15 years

New loan interest: 2.75%

Cost of refinancing: 5% of the loan amount

Expected holding period: 7 years

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