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 6.2%. 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?
O 65.64%
O 69.33%
O 63.90%
O 62.89%