Suppose borrow $100,000 at a rate of 8% with a 30 year fixed mortgage. Suppose after 5 years the rate goes down to 5.5% and youre considering refinancing it to a new 30 year fixed loan at the new rate.. Suppose the bank will charge a 2% pre payment penalty on the existing balance and a $1,500 fee on the new loan. Suppose I will take the fees and add them into my new loan. What is my new monthly payment after the refi?

a. $733.76 b. $1019.33 c. $424.18 d. $1119.44 e. $558.80