The mortgage on your house is five years old. It required monthly payments of $1,450 , had an original term of 30 years, and had an interest rate of 9% (APR). In the intervening five years, interest rates have fallen and so you have decided to refinancelong dash that is, you will roll over the outstanding balance into a new mortgage. The new mortgage has a 30-year term, requires monthly payments, and has an interest rate of 6.625% (APR).
a. What monthly repayments will be required with the new loan?
b. If you still want to pay off the mortgage in 25 years, what monthly payment should you make after you refinance?
c. Suppose you are willing to continue making monthly payments of $1,450. How long will it take you to pay off the mortgage after refinancing?
d. Suppose you are willing to continue making monthly payments of $1,450 and want to pay off the mortgage in 25 years. How much additional cash can you borrow today as part of the refinancing?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The mortgage on your house is five years old. It required monthly payments of $1,450 , had an original term of 30 years, and had an ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Sue has a balance of $35 in her checking account. She writes one check for $10, and three checks for $9 each. What is her balance now? A. $18 B. - $2 C. - $11 D. $54
Answers (1)
True or false: the effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers.
Answers (2)
The risk-free rate of interest is 4% and the market risk premium is 7%. Hughes Corporation has a beta of 1.3, and last year generated a return of 11% with a standard deviation of returns of 15%. The required return on Hughes Corporation stock is:
Answers (1)
On july 8, jones inc. issued an $80,000, 6%, 120-day note payable to miller company. assume that the fiscal year of jones ends july 31. using the 360-day year, what is the amount of interest expense recognized by jones in the current fiscal year?
Answers (1)
Before beginning his project, eddie list and gives a description of all the materials to be used. what is he making?
Answers (1)
New Questions in Business
You would advise a client that's launching a new product line to advertise on the google display network because she can:
Answers (1)
Which statement is generally TRUE? Private markets overprovide public goods. Private markets underprovide public goods. Private markets provide the socially optimal amount of public good.
Answers (1)
When opening a checking account, the bank does not run an account verification if you provide a state-issued ID.
Answers (1)
According to the case, the digital tabloid market is at which stage of the product life cycle?
Answers (1)
Which tab in the Group Policy Results window shows all events in Event Viewer that are generated by group policies, and can be used to view the relevant information on a remote computer?
Answers (1)