If closing costs of $1,950 are associated with the refinance of a mortgage that would reduce the monthly payment from $890 to $780,it would take approximately ________ months to cover these costs.

Question

Quizplus · Accepted Answer

The monthly savings from refinancing is $890 - $780 = $110. To cover the closing costs of $1,950 at a rate of $110 per month, it would take $1,950 / $110 = 17.727... months. Rounding up, it takes approximately 18 months to cover these costs.

If Closing Costs of $1,950 Are Associated with the Refinance