A borrower made a mortgage loan 7 years ago for $160,000 at 10.25 percent interest for 30 years. The loan balance is now $151,806.62 and rates for this amount are currently 8.0 percent for 23 years. Origination fees and closing costs are $4,500, and closing costs are not financed by the lender. What is the effective cost of refinancing? (Note: Your answer should have four decimal places.)