2. Create a flexible spreadsheet to answer the following question: A couple acquires a 30-year $450,000 mortgage at 7.75% today. They hope to refinance whatever is left on the mortgage in seven years (after 84 payments) when they expect interest rates to be lower, at 6.00%. If the refinancing costs will be $5,500 and the couple will get a new 23-year mortgage at the time of the refi, how much longer will the couple need to stay in the house in order to make the refi make sense? (The refi costs are paid as an upfront expense, they are not rolled into the next mortgage.)

3. Make an exact copy of your spreadsheet for question 3. Perform the same analysis with the following changes: The starting mortgage today is $660,000 and the beginning rate is 7.00%. Refi costs will be $4,000.