John anderson bought a home with a 10.5% adjustable rate mortgage for 30 years. he paid $9.99 monthly per thousand on his original loan. at the end of 5 years he owes the bank $65,000. now that interest rates have gone up to 12.5%, the bank will renew the mortgage at this rate or john can pay $65,000. john decides to renew and will now pay $10.68 monthly per thousand on his loan. you can ignore the small amount of principal that has been paid.