A borrower takes out a 20-year $375,000 at 5.40% on Jan 1st 2016. After 18 months of payments, the borrower refinances the mortgage at 3.25%.

a. Quantify the interest savings that will occur over the life of the mortgage if it is refinanced.

b. Determine the month and year of the final payment (the terminal payment) if this borrower refinances the mortgage but continues to make payments equal to what they were before the refinancing.