With the recent fall in interest rates, Jason and Sara would like your advice on refinancing their mortgage. Based on an independent analysis, the current valuation of their house has estimated the value at $275,000. The Browns received the following estimates:

Bank of America	Loan Deport
Term	30 years	30 ears
Interest rate	2.905	2.915
Closing Cost*	$10,800	$8,500
Time to Close	30 days	30 days
Points	$5,500 for .025%	$2,000 for 0.035%

*The Prepaids (escrow insurance and taxes) are identical, but the origination and attorney fees are different.

Using the information above, answer the following questions.

1. Given the information above, what is the estimated monthly payment for each mortgage?

2. What is the monthly mortgage payment if they should purchase the points for each mortgage.