A house was purchased 5 years ago with a $250,000, 9% 30-year loan. Thinking of refinancing, the borrower finds the current interest rate on 25-year loan is 7.5%. If the total cost associated to paying off the existing loan and obtaining the new loan is $9,215, and if you consider this cost is an "investment" for the payment savings, what is the rate of return of this "investment" if he plans to sell the house in five years after refinancing? A. 25.18% B. 22.16% C. 20.03% D. 18.92%

A house was purchased 5 years ago with a $250,000, 9% 30-year loan. Thinking of refinancing, the borrower finds the current interest rate on 25-year loan is 7.5%. If the total cost associated to paying off the existing loan and obtaining the new loan is $9,215, and if you were to borrow the entire cost of refinance as part of the new loan, what will be your monthly payment on the loan? A. 1,457.32 B. 1,633.45 C. 1703.58 D. 1,839.46