Cathy and Tom Presently Have a Mortgage Rate of 5

Cathy and Tom presently have a mortgage rate of 5.25% on their home, with 27 years and $260,000 remaining on their mortgage. Thirty-year mortgage rates have recently dropped to 4.5%. Costs related to refinancing would be $4,000, and they're planning to stay in their home for at least 10 more years. Does it make sense for them to refinance?

A) Yes, because it always makes sense to refinance for a lower rate.
B) Yes, because the savings they will realize through lower mortgage payments over the next 10 years are greater than the cost of refinancing.
C) No, because it doesn't make sense to refinance unless the mortgage rate is at least 2% lower a homeowner's current rate.
D) No, because the cost of refinancing is greater than the rate savings over 10 years.