1. An individual took a loan of $200,000 to buy a house. The loan carried an annual interest of 5.5% and was for 30 years. After 10 years, interest rates came down and the borrower is thinking of refinancing the mortgage for the remaining 20 years at an annual rate of 4.5%. If the home owner refinances, what will be the new monthly payments? If the cost associated with the refinancing is $8,000, would you recommend refinancing?