Question $1$

$3\mathrm{.}5$ pts

A borrower has secured a $30$ year, $$320,000$ loan at $7\%.$ Ten years later, the borrower has the opportunity to refinance with a $20$ year mortgage at $6\mathrm{.}2\%.$ However, there is an upfront fee of $$2500,$ which will be paid in cash.

What is the balance for the original loan after $10$ years.

$$253,480\mathrm{.}3$

$$274,599\mathrm{.}6$

$$289,483\mathrm{.}8$

$$263,032\mathrm{.}2$