A property was financed 5 years ago at 80% of 360,000 and an APR of 3%. Five years have passed and interest rates have dropped to an APR of 2.65% for a five year mortgage. Required fees for the new mortgage are $1,400. What is the effective cost to refinance the mortgage?

A. 2.72%

B. 2.96%

C. 3.02%

D. 3.07%

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