Mr$.$ Miles obtained a fully amortizing loan of $$800,000$ at $4\%$ p$.$a$.$ for $25$ years. After $5$ years, interest rates have dropped, so that a fully amortizing $20-$year loan can be obtained at $3\mathrm{.}5\%$ p$.$a$.$ If the refinancing costs are $$4,000...$

i$.$ What is the current monthly payment and the total outstanding balance after $5$ years? $(2$ Marks$)$

ii$.$ If the new lender offers an interest$-$only mortgage for the next $12$ months and the borrower agrees to refinance, what is the new monthly payment after $5$ years? $(1$ Mark$)$

iii. Is refinancing desirable? $(3$ Marks$)$

iv$.$ If the interest$-$only mortgage payment is maintained for the entire $12$ month period, explain how this would impact the loan balance? $(2$ Marks$)$