RE 611 I Fin 611 Real Estate Finance Homework 1" Renancing Analysis Dr. Stanley D. Longhor 1} Ralph's existing mortgage has an interest rate of 6 percent and an outstanding balance of $129,959.43. His currently monthly payment on this loan is $1,988.19. Ralph expects to move in 12 months, but needs some extra cash until then. He has been offered a new, interest-only loan at 5 .375 percent. The closing costs will be $2,827.98, which will be rolled into the loan. In addition, the lender has offered to roll real estate taxes of $642.59 and a $29.99 tax service fee into the loan balance.1 His new loan balance will be $183,599.99, with a monthly payment of $821.93 ($266.26 less than his current monthly payment}. The mortgage broker claimed that the payback on the closing costs associated with this loan was 19.62 months ($2,822.98 + $266.26), implying that even with a 12- month holding period this is a good move for Ralph. Evaluate the mortgage broker's analysis. Is this really a good deal for the borrower? Why or why not?l Provide calculations to support your conclusions