Use the following to answer questions 13-14.

You are starting to have second thoughts about moving. After going back and forth for several weeks you decide that you will make a decision based on whether or not you will refinance the house. If you refinance you will stay, if you dont you will move. You can refinance the home with a new interest rate of 3.5% for a 30 year term. You will refinance on the same day you would have closed on the home. The outstanding loan balance is 298,500.04. The cost of refinancing is 4.5% of the loan amount. Assume you anticipate selling the home (or refinancing again) in 5 years.

1. What is the net benefit of refinancing? Round to two decimal places. *Hint you are solving for net benefit of refinancing, no solving for NPV (so you do not need a discount rate to answer this question).

2. Will you be moving to Costa Rica?

Yes

No