Assume that your neighbor took a loan of $300000 five years ago. At that time s

Assume that your neighbor took a loan of $300000 five years ago. At that time she took a 30- year loan for 5.8%. She now wants to consider re-financing her
loan. She went to a bank and was told that re-financing her loan for 30 years would cost her $6500 upfront and re-financing her loan for 15 years would cost
her $5000 upfront. Your neighbor is low on cash and would prefer to add the upfront fees into her new loan. Your neighbor comes to seek your help with her mortgage dilemma.
Can you use your Time Value of Money skills to help guide your neighbor if she should go for re-financing? You can guide her in terms of helping her understand
her current interest expense versus future interest expense current PMT versus future PMT how a 15-year loan versus a 30- year loan would affect her
finances etc. Help her understand by giving her different scenarios so she can make a good decision that suits her best. You can get the current rates from
any bank website by searching under Mortgage Rates.
Provide your work using tables/graphs/explanations. Also attach a PDF of the website you used to obtain the mortgage rates.
Note: 3. Also when calculating the PV for the new 15-year and 30 year loans note that it will not be $300000 because the neighbor has already paid off some part
of the loan amount in the previous 5 years. The PV for the new 15-year and 30-year loans will be balance still remaining on the current loan after 5 years
(obtained from Balance Remaining at the end of Year 5) plus the upfront fees.