If a current mortgage payment of $792 per month can be reduced to $578 per month by refinancing, how many months would you need to remain in the house to recoup refinancing charges of $3,784? (Round up to the nearest month.)

Question

Quizplus · Accepted Answer

The monthly savings from refinancing is $792 - $578 = $214. To recoup the refinancing charges of $3,784, divide the total charges by the monthly savings: $3,784 / $214 ≈ 17.69. Rounding up gives 18 months.

If a Current Mortgage Payment of $792 Per Month Can