Suppose you are considering buying a house with a market price of $225,000. You plan on making a down payment of 15% and financing the remainder using a 30 year mortgage with a fixed interest rate of 6.25%.

After being in the house for four years, interest rates have dropped to 5% and you would like to refinance your loan for another 30 year term.

Balance after four years:

What would be the new monthly payments after re-financing?