Refinance Example Ten years ago a borrower received a mortgage loan of $300,000 to finance the purchase of a small rental property. The loan has a contract interest rate of 10.5 percent and is being amortized with monthly payments of $2,744 over 30 years. The current loan balance ( 10 year after origination) is $274,867. The mortgage rate currently available in the market is 9.0 percent and the borrower will refinance the $274,867 loan balance at 9%. The new monthly payment would be $2,212 with a 30 -year loan. Assume financing costs would be $8,497. Also assume an opportunity cost, or appropriate discount rate of 9 percent. Should the borrower refinance