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I need a little help on this problem. Imagine you have a $100,000 mortgage. Your current loan is at 7 percent with 14 years left,

I need a little help on this problem.

Imagine you have a $100,000 mortgage. Your current loan is at 7 percent with 14 years left, negotiated one year ago and involving $2,000 in closing costs. You are considering refinancing at 5.5 percent for 15 years. The closing costs would be $1,500.

What are the calculations for the current loan and the new loan?

Would you refinance and why?

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