Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 67

According to money.CNN.com, with mortgage rates near 35-year lows, you may be able to cut your payments sharply by refinancing your loan. To qualify for the best rates, you need a credit score of 740 or higher and usually at least 20% equity.
Even if you have to settle for a higher rate, a new loan may save you money. The main consideration is whether you will live in your home long enough to offset the refinance closing costs.
Your current mortgage payment is $1,458.50 per month, with a balance of $214,800. You have a chance to refinance at the Biltmore Bank with a 30-year, 5.5% mortgage. The closing costs of the loan are application fee, $90; credit report, $165; title insurance,.4% of the amount financed; title search, $360; and attorney's fees, $580.
You plan to live in your home for at least four more years. Use the Mortgage Refinancing Worksheet below to see if it makes sense to refinance your mortgage.