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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The current price for a good is $25 , and 100 units are demanded at that price. The price elasticity of demand for the good is negative 1. When the price of the good drops by 4 percent to $24 , consumer surplus increases by $ nothing.
Answers (1)
Which of these factors is an advantage to using cash? A. rewards B. good record keeping C. may have protection when stolen D. no debt
Answers (2)
Consider returns R on a stock XYZ in the follwoing 4 states of he economy. each with probability p Boom state: p=0.15, R=35% Normal state: p=x?, R=8% Slowdown state: p=0.1, R=1% Recession state: p=0.
Answers (1)
Paula, Fred, and Stephanie agree that Paula and Fred will form and conduct a partnership business and that Stephanie will become a partner in two years. Stephanie agrees to lend the firm $50,000 and take 10 percent of the profits in lieu of interest.
Answers (1)
Pre-determined overhead rates are calculated by dividing estimates of total factory overhead cost in the upcoming accounting period (usually a year) by an estimated usage or capacity of some unit of related activity (such as direct labor hours). A.
Answers (1)
New Questions in Business
Debt ratios measure the proportion of total assets financed by a firm's creditors. Sunny Co. has a debt-to-equity ratio of 4.00, compared to the industry average of 3.20. Its competitor Carter Co., however, has a debt-to-equity ratio of 6.00.
Answers (1)
As you're checking out the online edition of your local newspaper, you quickly scan a report in the business section that says government spending will again exceed tax revenues in the current year.
Answers (1)
Swiss Group reports net income of $36,000 for 2018. At the beginning of 2018, Swiss Group had $149,000 in assets. By the end of 2018, assets had grown to $199,000. What is Swiss Group's 2018 return on assets
Answers (1)
Assume that the banking system has total reserves of $100 billion. Assume also that required reserves are 10 percent of checking deposits, and that banks hold no excess reserves and households hold no currency. a.
Answers (1)
Repbulic LLC exchanged land used in its business for some new land to be used in the business. Republic LLC originally purchased the land it exchanged for $37,500. The new land had a fair market value of $39,750.
Answers (1)