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Kevin Tutumbo of Terre Haute, Indiana, has owned his home for $15$ years and expects to live in it for at least five more. He originally borrowed $$132,000$ at $5\mathrm{.}5$ percent interest for $30$ years to buy the home. He still owes $$92,000$ on the loan. Interest rates are now $4\mathrm{.}5$ percent, and Kevin is considering refinancing the loan for $15$ years. He would have to pay $2$ points on the new loan with no prepayment penalty on the current loan.

What is Kevin's current monthly payment? Round Estimating Mortgage Loan Payments for Principal and Interest in your intermediate calculations to four decimal places. Use Table $9-4.$ Round your answer to the nearest cent.

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Calculate the monthly payment on the new loan. $($Note: The points on the new mortgage are not included in the mortgage amount.$)$ Round Estimating Mortgage Loan Payments for Principal and Interest in your intermediate calculations to four decimal places. Use Table $9-4.$ Round your answer to the nearest cent.

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Advise Kevin on whether he should refinance his mortgage using the Run the Numbers worksheet, "When to Refinance a Mortgage". Round Future Value of a series of Equal Amounts and Future Value of a Single Amount in your intermediate calculations to four decimal places. Use Appendix A$-1$ and Appendix A$-3.$ Assume the annual savings, prepayment penalty, and closing costs can be invested at $3$ percent after taxes.

Kevin

$-$Select$-$

refinance his mortgage.

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