We call this $30-$year mortgage as the old mortgage. Currently, the market interest rate is $5\mathrm{.}25\%.$ The borrower is considering refinancing to a new $23-$ year mortgage at the current interest rate. We call this $23-$year mortgage as the new mortgage. The lender has a prepayment penalty of $3\%$ of the outstanding loan balance and the closing cost of the new mortgage is $2\%$ of the loan amount. Assume that the borrower intends to hold either mortgage until maturity. Should he refinance?

Yes, total savings of $$7,935>$ tatal refinancing cost of $$6,723$

Yes, total savings of $$9,488>$ total refinancing cost of $$6,723$

No$,$ total savings of $$6,590$ total refinancing cost of $$6,723$

No$,$ total savings of $$2,132$ total refinancing cost of $$6,723$