Respuesta :
Answer:
Option A,4 months
Explanation:
Closing fees =1.5% of the mortgage
mortgage amount is $150,000
closing fees =$150,000*1.5%=$2250
The mortgage monthly payment can be computed using the pmt formula in excel as follows:
=pmt(rate,nper,-pv,fv)
rate is the rate per month which is 3.5%/12=0.002916667
nper is 30 years multiplied by 12 =360
pv is the amount of mortgage which is $150,000
fv is the sum of the interest on mortgage and mortgage amount which is unknown
=pmt(0.002916667 ,360,-150000,0)= 673.57
the final answer=closing fees/monthly payment=$2250 /$673.57 = 3.34 months
The closest option is 4 months
It would take around 4 months to recoup the closing fees from the reduced loan payment amount.
The mortgage is fixed at 8% for 30 years of $150,000. Here, refinancing is done at 3.5% with bank charges of 1.5% or 0.015.
Now, computing closing fees would be:
[tex]150,000*0.015\\=2250[/tex]
The mortgage monthly payment is calculated as below:
[tex]pmt(rate,nper,-pv,fv)\\-(0.002916667 ,360,-150000,0)\\=673.57[/tex]
Hence, final closing fees would be:
[tex]\frac{2250 }{673.57} \\=3.34[/tex]
Learn more about the loan payment amount here:
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