Question

Your mortgage is a 30-year fixed at 8% on $150,000. you are considering refinancing at 3.5% fixed for 30 years. the bank charges you 1.5% of your debt in closing fees. approximately how long will it take you to recoup the closing fees from the reduced loan payment amount?

Answer 1

It would take approximately around 4 months to recoup the closing fees from the reduced loan payment amount.