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Five years ago a borrower took a mortgage for $180,000 at 5% for 30 years. Their monthly payment is $966.28. Currently, the market interest rate

Five years ago a borrower took a mortgage for $180,000 at 5% for 30 years. Their monthly payment is $966.28.

Currently, the market interest rate is 4% and the borrower is considering refinancing to a new 30-year mortgage. Their new monthly payment is $789.13.

Assume they intend to hold it until the end. With discounting, what will be their total savings if they refinance? (MULTIPLE CHOICE)

$17,772
	$9,945
	$5,797
	$23,114

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