Use the following information for the next 4 questions. Tom Miller owns a house that he bought 5 years ago for $200,000. He financed the purchase with an 80% LTV loan at 7% interest and a 30-year amortization term with monthly payments. Interest rates have since fallen and a new loan (which is equal to the balance of the original loan) is now available at 5.25% interest rate with 4 discount points and is amortized over 25 years with monthly payments. Neither mortgage requires a prepayment penalty. Assume that Tom cannot borrow the costs of refinancing. If Tom decides to refinance, what is the required initial investment (cost of refinancing)? O $12,064 O $8,000 O $6,024 0 $4,064 O $7,531