Sue and Bob are thinking about refinancing their mortgage to a 15-year mortgage.Their current mortgage payment is $945 each month and they have 221 payments left to pay off their house. If they refinance with the 15-year loan, they will have to pay $2,700 in closing costs, but their new mortgage payment will be $870. Which of the following is true?

a) Sue and Bob will pay off their mortgage 5 years sooner if they refinance their house.

b) Sue and Bob will lower their mortgage payment by 6% if they refinance.

c) It will take Sue and Bob 36 months to recoup the value of the closing costs t

Question

Sue and Bob are thinking about refinancing their mortgage to a 15-year mortgage.Their current mortgage payment is $945 each month and they have 221 payments left to pay off their house. If they refinance with the 15-year loan, they will have to pay $2,700 in closing costs, but their new mortgage payment will be $870. Which of the following is true?
 
a) Sue and Bob will pay off their mortgage 5 years sooner if they refinance their house.
 
b) Sue and Bob will lower their mortgage payment by 6% if they refinance.
 
c) It will take Sue and Bob 36 months to recoup the value of the closing costs t