Question

g.If closing costs of $1,950 are associated with the refinance of a mortgage that would reduce the monthly payment from $890 to $780, it would take approximately ____ months to cover these costs/homework-help/questions-and-answers/amount-mortgage-person-eligible-larger-payment-lower-debt-obligations-higher-value-collate-q50612908

Answer 1

Answer:

17.73

Explanation:

Calculation for the amount to cover these costs

Using Simple Payback Method

First step is to calculate the reduction in the monthly payment

Monthly payment reduction=(890-780)

Monthly payment reduction= 110

Last step is to calculate how many months it will take to cover the costs

Months to cover costs=(1,950/110)

Months to cover costs= 17.73

Therefore it would take approximately 17.73 months to cover these costs