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You have been asked to determine whether it is beneficial for a homeowner to refinance...

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Finance

You have been asked to determine whether it is beneficial for a homeowner to refinance their current mortgage loan. Their loan for 500,000 was originated five years ago and was a 30 year FRM with an interest rate of 4.5%. Their mortgage payment is currently $2,533.43. This loan now currently has 25 years remaining, and the homeowner is looking to refinance their current balance (i.e. the balance at the end of month 60) into a new 25 year FRM with an interest rate of 3.5%. How much will the homeowner save in interest over the 25 years remaining, assuming no prepayments? Round to the nearest dollar.

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