The year is 2035 (t=0). You are currently paying a mortgage of $7,200 every year. You have 10 more years left to pay. You already paid for this year. You see an ad on TV that says Now is the time to refinance! The couple on TV looks super happy and youre thinking hey, why not save some money. The new payments would be $6,000 annually, also for 10 years, with the first payment also being in one year (at t =1). The current interest rate is 5%. However, you would have to pay a fine at t =1 for switching mortgages and application fees for the new mortgage, which you believe will altogether cost you $10,000. Is refinancing worth it?