16 years ago, a homeowner obtained a fully amortizing loan $120,000 at eight percent interest for 30 years. Mortgage rates have dropped, so that a fully amortizing 14-year loan can be obtained today at six percent interest. There is a two-percent prepayment penalty on the mortgage balance of the original loan. In addition, the new loan will charge 3 points, and other closing costs on the new loan will add an additional $125.00. All payments and compounding are monthly.

What is the numeric value of the effective annual interest rate