Problem 21-13 Prepayments (LO3, CFA1) Consider a 25-year. $220,000 mortgage with a rate of 6.8 percent. Three years into the mortgage rates have fallen to 5,5 percent Suppose the transaction cost of obtaining a new mortgage is $2,400 a. Should the homeowner refinance at the lower rate? Yes No b. Quantify the effect of the homeowner's decision. (Do not round Intermediate calculations, Round your answer to 2 decimal places.) Monthly savings