Question $14$

$3\mathrm{.}33$ pts

A homeowner bought a property for $$300,0005$ years ago. He got a $$250,000$ loan at $9\%$ for $30$ years, the loan require monthly payments and is fully amortized. Currently mortgage rate for $25-$ year loan is at $7\mathrm{.}5\%.$ There is $2\%$ origination fee charged on the new loan amount. All payments are monthly.

What is the return on the investment $($ need to pay $2\%$ of the loan amount to refinance the mortgage$)?$ Assume that the homeowner will stay for the remaining loan term?

$60\mathrm{.}12\%$

$58\mathrm{.}91\%$

$68\mathrm{.}02\%$

$71\mathrm{.}42\%$