Five years ago, Diane secured a bank loan of $390,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 8%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to 6.5%/year compounded monthly, Diane is thinking of refinancing her property. (Round your answers to the nearest cent.)

(a) What is Diane's current monthly mortgage payment? $ __________ (b) What is Diane's current outstanding principal? $ __________ (c) If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 6.5%/year compounded monthly, what will be her monthly mortgage payment? $ _________ (d) How much less will Diane's monthly mortgage payment be if she refinances?

$ __________