If your current mortgage payment is 25 000, and you can refinance for 45 000 and
ID: 2798905 • Letter: I
Question
If your current mortgage payment is 25 000, and you can refinance for 45000 and have a 20 000 mortgage payment, how many months will it take you to reach or pass the breakeven point? If your current mortgage payment is 25 000, and you can refinance for 45000 and have a 20 000 mortgage payment, how many months will it take you to reach or pass the breakeven point? If your current mortgage payment is 25 000, and you can refinance for 45000 and have a 20 000 mortgage payment, how many months will it take you to reach or pass the breakeven point?Explanation / Answer
COst of refinance = 45,000
Monthly Saving = 25,000 - 20,000
= 5,000.
Number of month it take for breakeven = 45,000 / 5,000
= 9 month
It take 9 month for breakeven.