Consider a 25-year, $195,000 mortgage with a rate of 6.55 percent. Seven years into the mortgage rates have fallen to 5.25 percent. Suppose the transaction cost of obtaining a new mortgage is $2,150. a. Should the homeowner refinance at the lower rate? Yes b. Quantify the effect of the homeowner's decision. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Monthly savings A homeowner took out a 25-year fixed-rate mortgage of $215,000. The mortgage was taken out 9 years ago at a rate of 715 percent. If the homeowner refinances, the charges will be $3,450. What is the highest interest rate at which it would be beneficial to refinance the mortgage? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) APR