Ten years ago, Rene bought a house at $500,000. She paid a 20% down payment and financed the rest using a 30-year fixed-rate mortgage at an APR of 4%. Today, right after her 120^th mortgage payment, Rene finds the following information from her banks website.

Loan Type	Rate (APR)
15-year fixed refinance	2.8%
20-year fixed refinance	3%
7/1 ARM refinance	3%

Assume all cash flows occur at month-end. APRs are monthly compounded.

1. If Rene chooses to refinance today, using a 20-year fixed refinance loan, how much can she save per month?
2. Rene estimates that the total closing cost associated with refinancing to be $5,000 (including appraisal, inspection, loan application, loan origination, recording, attorney, etc). Should she refinance or not?