How much will she gain or lose

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Jingfei bought a house 5 years ago for $250,000. Her down payment on the house was the minimum required 10% at that time she financed the remainder with a 15-year fixed rate mortgage. The annual interest rate was 8% and she was required to make monthly payments, and she has just made her 60th payment. A new bank has offered to refinance the remaining balance on Jingfei's loan and she will have to pay $2,170 per month for the next 10 years, but the total fees she will have to pay today to get the new loan is $1,200. Should she take the new offer? How much will she gain or lose in today's dollars if she does? Annual interest rates are still 8%.

Reference no: EM132535086

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