Amy is purchasing a new house in College Park, MD costing $400,000 with a 20% down payment. The 30 year mortgage has a primary interest rate of 4%, and it is an additional $500 per month to cover home insurance and property tax (escrow account). After 5 years of paying the mortgage, Amy wants to refinance the mortgage for 25 years at 3% interest rate. What is the payoff amount and the savings in monthly mortgage payment, assuming her escrow payments stay the same?

1. Payoff=$228,336; Monthly Payment Savings= $322
2. Payoff=$289,432; Monthly Payment Savings= $155
3. Payoff=$228,320; Monthly Payment Savings= $445
4. Payoff=$361,790; Monthly Payment Savings= $194