5. Paul and Evelyns house (from previous question ) has gone up in value over the last 5 years and is now worth $425,000. Since interest rates have also decreased in the last few years, Paul and Evelyn now have offers to refinance their mortgage. They can refinance with a 15 year mortgage for 2.75% rate with no closing costs. a. (1 point) What would the new monthly payments be for the Peters if they choose to refinance the mortgage? b. (4 points) How much would they save in interest payments over the remaining life of their loan? Should they refinance? (hint: you may need to do another amortization table for the new loan) c. (4 points) The lenders are also giving Paul and Evelyn the option to cash out some of the equity on their house. They can borrow up to 80% of the new appreciated home value. How much can they cash out? If they choose to cash out, what would the monthly payments on their refinance loan be? Should they cash out given the returns on most investments are currently 6% a year?