Suppose you want to refinance your mortgage to take out $25,000 in equity. Your existing loan balance is $88,000 with a five percent prepayment penalty. You do not want to have any out-ofpocket expenses at closing. The new loan has financing costs of six percent. How much must you borrow on the new loan? $122,944$124,444$123,298$124,894 Suppose you want to refinance your mortgage to take out $25,000 in equity. Your existing loan balance is $88,000 with a five percent prepayment penalty. You do not want to have any out-ofpocket expenses at closing. The new loan has financing costs of six percent. How much must you borrow on the new loan? $122,944$124,444$123,298$124,894