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You currently have a 30-year fixed-rate mortgage financed at 7.25% on a $213,000 home. There are 21 years remaining on the mortgage. Your banker friend

You currently have a 30-year fixed-rate mortgage financed at 7.25% on a $213,000 home.  There are 21 years remaining on the mortgage.  Your banker friend tells you that for a small fee (2.7% of the principal borrowed), you can refinance the remaining balance of your mortgage at a fixed rate of 4.75% for 21 years.  



What is the present value of the benefit (net savings) to refinancing?

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