Suppose a homeowner purchased a home for $100,000, with 100% financing at 5 percent for 10 years. Payments are made yearly at the end of each year. It seems to me that the yearly payments would be $12,950(to the nearest dollar).

After one year, the homeowner will still owe a principal of $90,931 if I did it correctly.

Refinancing the principal at 4% for 9 years will save how much in raw dollars over the final 9 years?

	$5,133
	0
	$12,380
	$111,421