Bart Kelly bought a home with a 10% adjustable rate mortgage for 30 years. He paid $8.78 monthly per thousand on his original loan. At the end of 2 years he owes the bank $65,000. Since then interest rates have increased to 12.25%. The bank will renew the mortgage at this rate, or Bart can pay the bank $65,000. He decides to renew and will now pay $10.48 monthly per thousand on his loan. You can ignore the small amount of principal paid during the 2 years.