Real Estate Math
An Indiana homeowner in Bloomington wants to refinance $210,000. The closing costs are $5,250 and the new monthly payment saves $175/month. What is the break-even period in months?
A24 months
B30 months✓ Correct
C36 months
D42 months
Explanation
Break-even = Closing Costs ÷ Monthly Savings = $5,250 ÷ $175 = 30 months. Using the values given ($210,000, $5,250), apply the appropriate formula.. The correct answer is 30 months.. This is a common calculation on the Indiana real estate exam.
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