Problem:
You have a $100,000 mortgage. The current loan is at 7 percent with 14 years left, negotiated one year ago and involving $2,000 in closing costs. You are considering refinancing at 5.5 percent for 15 years. The closing costs would be $1,500. Would you decide to refinance? Why or why not? What qualitative considerations would you consider in your decision to refinance or not refinance? Explain in detail and provide step by step solution.