Consider a $20-$year, $$180,000$ mortgage with a rate of $6\mathrm{.}4$ percent. Six years into the mortgage, rates have fallen to $5\mathrm{.}1$ percent. Suppose the transaction cost of obtaining a new mortgage is $$2,000.$

Should the homeowner refinance at the lower rate?

multiple choice

Yes

No

Quantify the effect of the homeowner's decision.

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Return to question

$30$

$w$ mortgage is $$2,000.$

Should the homeowner refinance at the lower rate?

$2$

points

Yes

No

Quantify the effect of the homeowner's decision.

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Answer is complete but not enti

Monthly savings

$$,101\mathrm{.}28$