#2 Suppose you take a $300,000 thirty-year fixed-rate mortgage at 5.75%, two discount points, monthly payments. At the end of the second year you inherit $20,000 from your now-favorite aunt. You decide to apply this $20,000 to the principal balance of your loan.

A. (1 pt) How many monthly payments are remaining after the extra lump sum payment is made?

B. (1 pt) What is your net interest savings over the life of the loan, assuming the loan is held to its maturity?