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Suppose you want to refinance your mortgage to take out $25,000 in equity. Your existing loan balance is $98,000 with a 5% prepayment penalty. You

Suppose you want to refinance your mortgage to take out $25,000 in equity. Your existing loan balance is $98,000 with a 5% prepayment penalty. You do not want to have any out-of-pocket expenses at closing. The new loan has financing costs of 6%. How much must you borrow on the new loan?

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