You have had a 30yr FA FRM at 10% for 5 years. The original principal was 1,000,000. You are considering a cash-out refi into a 15-year mortgage at 7.5%. The old mortgage has a prepay penalty of 3% if payoff occurs before year 8. The new mortgage has fees of 4%, and no prepay penalty. The additional cash is for a $60,000 car, and can be borrowed at 9% over 10 years, with upfront fees of 1%.

Assume all fees will be financed, and that under either scenario you will be moving 10 years from now.

What is the NPV of refinancing?