Part 2 Assume that you chose the 80% LTV mortgage from the previous section, but after 10 years are thinking about refinancing for $5,000. You will only be in the home for another 5 years. The new loan would be an ARM. Interest rates on 20 -year ARMS are currently 6%. Interest rates are expected to increase to 7% in years 2 and 3 and then to 8% in years 4 and 5. - Find the return on your $5,000 refinancing cost. Should you refinance? - If interest rates rose faster than expected, how might this change your answer? (No calculation is needed. Explain in words.)