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A borrower has secured a 30 year, $170,000 loan at 7% with monthly payments. Fifteen years...

A borrower has secured a 30 year, $170,000 loan at 7% with monthly payments. Fifteen years later, the borrower has the opportunity to refinance with a fifteen year mortgage at 5.75%. However, the up front fees, which will be paid in cash, are $3,500. What is the return on investment if the borrower expects to remain in the home for the next fifteen years?

20.50%

7.00%

29.12%

22.62%

28.89%

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