> Suppose that you are currently making monthly payments on a $315,000 26-year mortgage at 5.40% interest compounded monthly. > After 8 years, you decide to refinance your current mortgage with a new 25-year mortgage that has an interest rate of 4.8% compounded monthly. The lender of the new loan has a closing cost fee of $1,900 for the new (refinanced) mortgage. The lender stipulates that the closing costs must be paid in cash and cannot be part of the new loan. >> You are to determine how much money you would save or lose if you were to refinance your home. STEPS Step 1: Solve for the payment on the original mortgage (TVM Solver PMT). Step 2: Find the remaining principal on the loan as of the date of refinancing (TVM solver FV after 8 years). Step 3: Find the payment on the NEW mortgage (TVM Solver PMT letting PV = answer from step 2)