Real Estate Math
A Montana homeowner refinances their $175,000 mortgage at a lower rate, reducing their monthly payment from $1,250 to $1,100. Their closing costs were $3,500. How many months until they break even on the refinance?
A15 months
B17 months
C23 months✓ Correct
D29 months
Explanation
Monthly savings = $1,250 - $1,100 = $150. Break-even = $3,500 / $150 = 23.3 months, approximately 23 months.
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