Consider a 30-year, $155,000 mortgage with a rate of 6.95 percent. Nine years into the mortgage, rates have fallen to 5.65 percent. Suppose the transaction cost of obtaining a new mortgage is $1,650.

A. Should the homeowner refinance at the lower rate? O Yes O No

b. Quantify the effect of the homeowner's decision. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Monthly savings= ?