Question: In the refinancing example above, rates must have dropped a lot since the original loan, causing a refi to yield a substantially lower monthly payment.

In the refinancing example above, rates must have dropped a lot since the original loan, causing a refi to yield a substantially lower monthly payment. The refi decision is easy for that case. Sometimes the decision is harder. The graphs below show another refinancing situation, where the refi still costs $3,000, but the payment only drops from $2,000 to $1,900 per month. About where is the breakeven point

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