In 2009, a couple purchased a house, financing $155,000 of the purchase with an 11% mortgage (monthly compounded) over 30 years. On the anniversary date of their mortgage in 2019, rates had fallen to 9%. If they refinance their home at this time with a new 20 year loan, they will incur prepayment penalties and closing costs which are equal to 5% on the new mortgage. 2 Assume that the couple can finance both the new mortgage and the prepayment/closing costs at the 9% rate. Assume the couple makes monthly payments. Should they refinance their home?