Consider a $30-$year, $$155,000$ mortgage with a rate of $6\mathrm{.}95$ percent. Nine years into the mortgage, rates

have fallen to $5\mathrm{.}65$ percent. Suppose the transaction cost of obtaining a new mortgage is $$1,650.$

a$.$ Should the homeowner refinance at the lower rate?

Yes

No

b$.$ Quantify the effect of the homeowner's decision.

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Monthly savings