You Purchase a $325,000 Town Home and You Pay 25

You purchase a $325,000 town home and you pay 25% down. You obtain a 30-year fixed-rate mortgage with an annual interest rate of 5.75%. After 5 years you refinance the mortgage for 25 years at a 5.1% annual interest rate. After you refinance, what is the new monthly payment (to the nearest dollar) ?

A) $1,422
B) $1,401
C) $1,366
D) $1,335
E) $1,296 0.75 * $325,000 = Pmt * PVIFA (0.0575/12, 360 months) ; Balance after 5 years = 226,107.8; New Pmt = 226,107.8/PVIFA (0.051/12,300) = 1,335.01