A couple took out a $394,000.00 mortgage ten years ago. The original terms called for 30 years of monthly payments at a 6.50% compounded monthly. The couple has made all payments over the last 10 years. The couple has been offered a chance to re-finance their mortgage balance. The new mortgage will be for 30 years at the lower rate of 3.90% compounded monthly. The mortgage will call for monthly payments of $ 1) 1,499.89 2) 1,516.92 3) 1,525.11 4) 1,537.43 5) 1,575.46