Considering the following information, what is the net benefit (before tax) if the borrower refinances the loan? Expected holding period: 6 years; current loan balance: $100,000; current loan interest: 7%; remaining term on current mortgage: 17 years and 5 months; new loan interest: 5.5%; new loan term: 17 years and 5 months; cost of refinancing: $5,000.

a. $1,085.85

b. $886.00

c. -$585.50

d. $1,051.71