Suppose you purchased a house 3 years ago and took out an 5%, $200,000, 20-year mortgage with monthly payments. Today you can refinance the loan at 3% at a cost $2,000. Assume that you would only refinance enough to repay the old loan and the cost of refinancing. If you took out a 10-year loan at the new rate what would be your payments?

1968.45

1768.45

1868.45

1668.45