Real Estate Math
A NJ property owner refinances a $300,000 mortgage at a lower rate, saving $180/month. How many months must they keep the loan to break even if the refinancing costs $3,600?
A15 months
B18 months
C20 months✓ Correct
D24 months
Explanation
Breakeven = Total refinancing cost ÷ Monthly savings = $3,600 ÷ $180 = 20 months. Using the values given ($300,000, $180), apply the appropriate formula.. The correct answer is 20 months.. This is a common calculation on the New Jersey real estate exam.
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