You are trying to decide whether or not to refinance given the following information:

• Current Loan:
• $2,000,000
• 7%
• 30 yr(amortization)
• Issued 10 yrs ago (20 yrs left)
• New Loan:
• 5.5%
• 30 yr(amortization)
• $2000 in closing costs
• 1 point
• If you do not refinance, then you would invest the fees in the stock market @ 9% annual return.

Should you refinance? Explain why or why not. Show each step and all calculations to receive full credit!