Question $5$

$3\mathrm{.}5pts$

A borrower has secured a $30$ year, $$320,000$ loan at $7\%.$ Ten years later, the borrower has the opportunity to refinance with a $20$ year mortgage at $6\mathrm{.}2\%.$ However, there is an upfront fee of $$2500,$ which will be paid in cash.

What is the return on investment $($refinance$)$ if the borrower expects to remain in the home for the next five years?

$65\mathrm{.}64\%$

$69\mathrm{.}33\%$

$63\mathrm{.}90\%$

$62\mathrm{.}89\%$