Question $10$

$10pts$

Suppose that you purchased a house with a $$140,000$ mortgage $(30-$year fixed at $6\%$ with a payment of $$839\mathrm{.}37)$ five years ago. The loan balance is currently $$130,276$ and you can refinance that balance at $5\%$ with a new $30-$year fixed rate mortgage. You anticipate being in the house for another six years, at which point the balance on your current mortgage would be $$114,032.$ If you refinanced at the terms above, what would be the difference in the loan balances?

$$1,329$

$$1,871$

$$2,471$

$$3,132$

$$3,860$