A borrower made a mortgage loan 5 years ago for $80,000 at 15 percent interest rate for 30 years (monthly payment). After 5 years, interest rates fall, and a new mortgage loan is available at 14 percent 25 years. The loan balance on the existing loan is $78,976.50. Suppose that the prepayment penalty of 2 percent must be paid on the existing loan, and the lender who is making the new loan available also requires an origination fee of $2,500 plus $25 for incidental closing costs if the new loan is made. What will be the cost associated with refinancing and the saving from the refinancing?

a. $4,105, $ 60.87

b. $4,000, $ 50.87

c. $4,200, $ 71.00

d. $4,400, $ 45.45