Problem 21-13 Prepayments (LO3, CFA1) Consider a 30-year, $140,000 mortgage with a rate of 7.1 percent. Seven years into the mortgage, rates have fallen to 5.8 percent. Suppose the transaction cost of obtaining a new mortgage is $1,500. a. Should the homeowner refinance at the lower rate? O Yes O No b. Quantify the effect of the homeowner's decision. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Monthly savings