Question: Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 7% compounded monthly, with monthly payments. After 5 years

Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 7% compounded monthly, with monthly payments.

After 5 years of payments, Ann can refinance the balance into a 25 year Fully Amortizing FRM at an annual interest rate of 5.25% compounded monthly, with monthly payments.

If Ann refinances into this 25 year loan, what will be her monthly savings on her mortgage payment?

A)	$1,012.21
B)	$1,455.04
C)	$5,197.98
D)	$6,653.02

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