Question: You are starting to have second thoughts about moving. After going back and forth for several weeks you decide that you will make a decision

You are starting to have second thoughts about moving. After going back and forth for several weeks you decide that you will make a decision based on whether or not you will refinance the house. If you refinance you will stay, if you don't you will move. You can refinance the home with a new interest rate of 2.75% for a 30 year term. You will refinance on the same day you would have closed on the home (so you can use the outstanding loan balance you calculated in #7 here). The cost of refinancing is 5% of the loan amount. Assume you anticipate selling the home (or refinancing again) in 7 years.

9) What is the net benefit of refinancing? Round to two decimal places.*Hint you are solving for net benefit of refinancing, not solving for NPV (so you do not need a discount rate to answer this question).

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