Mary got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 7% with monthly payments. After 5 years of payments, Mary can refinance the balance into a 25 year Fully Amortizing FRM at an annual interest rate of 6%, with monthly payments. Refinancing will cost Mary 1 point and $1,500 in closing costs. If Mary refinances into this loan and makes payments for 25 years, what will be her return on investment from refinancing?

5.39%

6.00%

7.00%

64.67%