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A borrower is 15 years into a 30-year mortgage loan. Her monthly payments are $1,607.76 and she has $200,000 of remaining principal. She has an opportunity to refinance into a 15-year loan at 4.25% annual interest. The cost to refinance is $6,000.

1. How much would she save over the life of the loan if she refinanced (ignoring the time-value of money)?

2. How long (years) would it take her to recoup the cost to refinance?