A $250,000 mortgage was initially established with 30 years of monthly payments at 8.0% AR interest. After 10 years (120 payments), you observe that market interest rates have decreased to 3.5% AR for a new 20 year mortgage. You are considering refinancing the existing mortgage over the remaining 20 years. Refinancing charges amount to $2,500 and can be added to the amount refinanced. If you maintain the payments at the original level, how much money would the refinancing make available to remodel a room in your house?

Please show all work without an excel sheet, thank you!