For question 10 I need to write questions 9 first.

1. Refinancing. Doug and Lynn bought their home three years ago. They have a mortgage payment of $601.69. Interest rates have recently fallen, and they can lower their mortgage payments to $491.31. If they refinance? They are in the 15% marginal tax savings. (Hint:Consider the reduction in tax savings.)
2. If the cost of refinancing their house is $3,860, how long would Doug and Lynn (from problem 9) have to remain in their home in order to recover the cost? (ignore any ineterest on the savings in asnwering this question.)