You have been living in the house you bought 6 years ago for $400,000. At that time, you took out a loan for 80% of the house at a fixed rate 25-year loan at an annual stated rate of 8.0%. You have just paid off the 72th monthly payment. Interest rates have meanwhile dropped steadily to 5.5% per year, and you think it is finally time to refinance the remaining balance over the residual loan life. But there is a catch. The fee to refinance your loan is $5,500. Should you refinance the remaining balance? How much would you save/lose if you decided to refinance?

Group of answer choices

No, lose $59,864.11

Yes, gain $59,864.11

Yes, gain $54,364.11

No, lose $54,364.11