HomeworkLib
Question

The mortgage on your house is five years old. It required monthly payments of $ 1,422,...

The mortgage on your house is five years old. It required monthly payments of $ 1,422, 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 refinance long 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 6.125 %​(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 $ 1,422. How long will it take you to pay off the mortgage after​ refinancing?

d. Suppose you are willing to continue making monthly payments of$ 1,422​, and want to pay off the mortgage in 25 years. How much additional cash can you borrow today as part of the​ refinancing? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.)

a. What monthly repayments will be required with the new​ loan?

The monthly repayments with the new loan will be$ _____.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Home nert Page Layout Formulas Data Review View dd-Ins E AutoSum Cut ー E ゴWrap Text Sort &Find & aCopy в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Formatting as Table Styles2 Clear Format Painter Cells Edting Number Alignment Clipboard J302 IR IS IT IN lO IP Ia IK IM PMT TERM RATE NO OF PERIODS IN A YEAR 1422 30 9% 12 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 YEARS 25 NO OF YEARS LEFT 169447.83 [ EXCEL-PV(I0287/10288,I0290 I0288,-10285)] LOAN BALANCE AFTER 5 YEARS REFINANCING RATE PMT ON NEW LOAN 6.125% 1029.58 [EXCEL PMT(IO294/I0288,I0286 I0288,-10291)] 25 YEARS PMT ON NEW LOAN 1104.74 [EXCEL -PMT(IO294/10288,I0297 IO288,-I0291)] 1422 PMT NO OF MONTHS TO REPAY THE LOAN NO OF YEARS TO REPAY THE LOAN 184.0547715 [EXCELNPER(I0294/12,-IO300,10291)] 15.34 [EXCEL I0301/10288] BOX DILUTIONDOLLAR COST AVG MORTGAGE EXPO SheetiSheet Sh fv. ann CAP STRU VALUE 福 130% CALCULATOR | LOAN OPTIONS 04:41 29-01-2019Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text aCopy в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste Sort &Find & 2 ClearFe Select Edting Format Painter Formatting, as Table w styles. ▼ ㆆ ▼ Clipboard Alignment Number Cells IK313 IJ IK IM IN lO IP Ia IR IS IT 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 44 CALCULATOR LOAN OPTIONS PMT NO OF MONTHS TO REPAY THE LOAN NO OF YEARS TO REPAY THE LOAN 1422 184.05 EXCEL NPER(10294/12,-l0300,10291)] 15.34 [EXCEL 10301/10288] PMT YEARS RATE NO OF PERIODS IN A YEAR LOAN AMOUNT SHOULD BE 1422 25 6.125% 12 218110.21 [EXCEL PV(I0306/10307,I0305 *I0307,-10304)] ADDITIONAL CASH THAT CAN BE BORROWED $48,662.39 (218110.21 - 169447.83) fv. ann CAP STRU VALUE LOCK BOX DILUTION- DOLLAR COST AVG MORTGAGE, EXPO Sheet1 /Sheet2. Sh 福 130% 4s ENG 29-01-2019

0 0
Add a comment
Know the answer?
Add Answer to:
The mortgage on your house is five years old. It required monthly payments of $ 1,422,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The mortgage on your house is five years old. It required monthly payments of $ 1,422,...

    The mortgage on your house is five years old. It required monthly payments of $ 1,422, 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 refinance, 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 6.125 % (APR). a....

  • The mortgage on your house is five years old. It required monthly payments of $ 1...

    The mortgage on your house is five years old. It required monthly payments of $ 1 422 , 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 dashthat 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...

  • 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 8% (APR). In the intervening five years, interest rates have fallen and so you have decided to refinance

    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 8% (APR). In the intervening five years, interest rates have fallen and so you have decided to refinance—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 6.125% (APR). a. What monthly repayments will be required with...

  • The mortgage on your house is five years old. It required monthly payments of SEK 12,000,...

    The mortgage on your house is five years old. It required monthly payments of SEK 12,000, had an original term of 30 years, and had an interest rate of 6.5% (APR). In the intervening five years, interest rates have fallen and so you have decided to refinance - 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 3.5% (APR). (a)...

  • The mortgage on your house is five years old. It requiredmonthly payments of $1,450​, had...

    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 10% (APR). In the intervening five years, interest rates have fallen and so you have decided to refinance — 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...

  • Ten years ago you obtained a 30-year mortgage for $400,000 with a fixed interest rate of...

    Ten years ago you obtained a 30-year mortgage for $400,000 with a fixed interest rate of 3% APR compounded monthly. The mortgage is a standard fixed rate mortgage with equal monthly payments over the life of the loan. What are the monthly fixed mortgage payments on this mortgage (i.e., the minimum required monthly payments to pay down the mortgage in 30 years)? What is the remaining loan balance immediately after making the 120th monthly payment (i.e., 10 years after initially...

  • Five years ago you borrowed $230,000 to finance the purchase of a $290,000 house. The interest...

    Five years ago you borrowed $230,000 to finance the purchase of a $290,000 house. The interest rate on the old mortgage is 5.5%. Payment terms are being made monthly to amortize the loan over 30 years. You have found another lender who will refinance the current outstanding loan balance at 3.5% with monthly payments for 25 years. There are no prepayment penalties associated with either loan. You feel the appropriate refinancing cost is 5% of the new loan amount. a....

  • Suppose you are two years into a 30-year mortgage at 4.125%. Your minimal monthly payment is $710...

    Suppose you are two years into a 30-year mortgage at 4.125%. Your minimal monthly payment is $710.79 and your remaining balance on the loan is $141,500. You've been offered a deal to refinance to a 15 year mortgage at 3.125% with no closing costs. To determine if you should refinance, answer the following. (A) What is the monthly payment on a 15 year mortgage for $141,500 at 3.125% interest? (B) If you were to make the minimum monthly payments on...

  • When Gustavo and Serrana bought their home, they had a 5.9% loan with monthly payments of...

    When Gustavo and Serrana bought their home, they had a 5.9% loan with monthly payments of $870.60 for 30 years. After making 78 monthly payments, they plan to refinance for an amount that includes an additional $35,000 to remodel their kitchen. They can refinance at 4.8% compounded monthly for 25 years with refinancing costs of $625 included with the amount refinanced. (a) Find the amount refinanced. (Round your answer to the nearest cent.) $ 167661.87 Correct: Your answer is correct....

  • Your have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800,000.

    Your have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800,000. The mortgage is currently exactly 18.50 years old, and you have just made a payment. If the interest rate on the mortgage is 5.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Ignore any real estate transaction costs.) The discount rate is _______  % per month. (Round...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT