To purchase a home, a couple borrowed $280,000 at 5.1% compounded monthly for 25 years. After making 70 payments of $1653.21, they plan to refinance at 4.2% compounded monthly for 15 years, with refinancing costs of $1100 added to the new loan.
(a) Find the amount refinanced.
(b) Find the new monthly payment.
(c) If this couple decides to make payments of $2000 per month on this refinanced loan, how long will it take to pay off the loan?
(d) How much is saved in total by refinancing and making monthly payments of $2000 on the refinanced amount?