David obtained a fully amortizing loan 8 years ago for $12,0000 at 8% for 30 years. Mortgage rates have dropped in such a manner so as to provide a loan for 22 years at 6.5%. There is no prepayment penalty on the mortgage balance of the original loan, but 2 points will be charged on the new loan and other closing cost will be $3000. All payments are monthly.

How much does David need to borrow if he decides to borrow only outstanding loan balance?

Is refinancing a good option if David decides to repay the full amount of loan in 5 more years?

How would your answer for part 2a change if David decides to borrow outstanding loan balance and other refinancing costs?

Would your answer for part 2b change if David decides to keep the loan for full term of the loan?