Use Worksheet $5\mathrm{.}4.$ Latha Yang purchased a condominium $5$ years ago for $$75,000,$ paying $$559$ per month on her $$60,000,9\mathrm{.}5$ percent, $20-$yearmortgage. The current loan balance is

$$53,559.$ Recently, interest rates dropped sharply, causing Latha to consider refinancing her condo at the prevailing rate of $7\mathrm{.}0$ percent. She expects to remain in the condo for at least $5$ more

years and has found a lender that will make a $7\mathrm{.}0$ percent, $15-$year, $$53,559$ loan, requiring monthly payments of $$481.$ Although there is no prepayment penalty on her current mortgage, Latha

will have to pay $$1,500$ in closing costs on the new mortgage. She is in the $15$ percent tax bracket. Based on this information, use the mortgage refinancing analysis form in Worksheet $5\mathrm{.}4$ to

determine whether she should refinance her mortgage under the specified terms.

She $($should not$/$should$)$refinance her mortgage under the specified terms. she should refinance her mortgage under the specified terms.