Finance
An Iowa homeowner refinances their mortgage to obtain a lower interest rate. The cost-benefit analysis should consider the:
ASeller's original purchase price
BBreak-even period: how long before monthly savings exceed closing costs✓ Correct
CCurrent assessed value for tax purposes
DListing agent's commission rate
Explanation
The break-even period compares upfront refinancing costs (points, fees) against the monthly savings from the lower rate. If the homeowner plans to stay longer than the break-even period, refinancing is financially beneficial.
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