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7 years ago a fixed rate mortgage for $ 100,000 was issued which would fully amortize monthly in 20 years. The contract rate was 8%.

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7 years ago a fixed rate mortgage for $ 100,000 was issued which would fully amortize monthly in 20 years. The contract rate was 8%. Refinancing costs $. 3,000 Now tha rates have fallen to 6%. What is the monthly payment? 1 1 What is the loan balance? 2 What is the Break-even rate for refinancing BER is refinancing a good idea? Independent of your answer in d., let's say, you opt for refinandng. If refinancing means a full cash-out, how much will it be? What is the loan valve now given the new rate? PV based on new rate 2 Re-financed PV 2 Cash Out Suppose refinancing means maximum reduction in the payment What is the payment? New Payment 2 Reduction Suntereinancing man maximum reduction in the number of payment How many payments are set New remaining Payment original remaining payments Suppose refinancing means maximum reduction in the number of payment. How many payments are left? New remaining Payment original remaining payments How many payments were reduced? 2 7 years ago a fixed rate mortgage for $ 100,000 was issued which would fully amortize monthly in 20 years. The contract rate was 8%. Refinancing costs $. 3,000 Now tha rates have fallen to 6%. What is the monthly payment? 1 1 What is the loan balance? 2 What is the Break-even rate for refinancing BER is refinancing a good idea? Independent of your answer in d., let's say, you opt for refinandng. If refinancing means a full cash-out, how much will it be? What is the loan valve now given the new rate? PV based on new rate 2 Re-financed PV 2 Cash Out Suppose refinancing means maximum reduction in the payment What is the payment? New Payment 2 Reduction Suntereinancing man maximum reduction in the number of payment How many payments are set New remaining Payment original remaining payments Suppose refinancing means maximum reduction in the number of payment. How many payments are left? New remaining Payment original remaining payments How many payments were reduced? 2

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