Tom is thinking about refinancing his mortgage. Now he has $300,000 outstanding mortgage and currently his mortgage interest rate is 4.5%, 30 year fixed rate but he has 15 years left to payoff. If he wants to apply for refinancing, the current rate is 2.25% for 15 year fix rate mortgage but he has to pay $7000 closing cost for the refinancing. Please feel free to share your thoughts on whether Tom should go ahead with the refinancing or not? Will this change his decision if will sell his house in five years? Hint: 1) What is his current mortgage payment a month 2) If he refinances what will be his new monthly mortgage payment 3) if he can borrow extra money to cover the closing cost, i.e., he can borrow 307000, what will be his new mortgage payment 4) if he borrows 307000 but he only get 300,000 to cover his mortgage. This is what is called no point no fee refinancing. In this case, what would be his no point no fee mortgage rate