2. You got a 30-year FA-FRM for $400,000 at a rate of 6%, with constant monthly payments. After 3 years of payments, the rates fall and now you can get a 27-year FRM at 5%. However, you will need to pay 2 points and $1,500 in closing costs to get the newer mortgage. What is the IRR of refinancing assuming you will stay in the new mortgage until maturity?

Please include all steps and calculations from calculator. Thank you! :)