Because the "cash out" amount is nothing but an additional loan that the bank is giving you today, what is the incremental annual cost of refinancing of this "cash out" amount?

Your answer is ___________% per year. Put the number in percent, not in decimals, and do NOT put the "%" sign. Round to 2 decimal places. For example, if you got 1.23%, put 1.23.

This Santa Claus wants to give you a HINT: "To solve this problem, from the above two tables you only need to use 6 numbers! Ho-ho-ho!"

It is based on the following numbers:

The "cash out" amount (i.e., the additional loan) equals $ _________. Round to whole dollar, and do NOT use the "$" sign. Put as positive value.

The required monthly payment on this "cash out" loan amount equals $ _________. Round to whole dollar, and do NOT use the "$" sign. Put as positive value.

There will be a total of of those "cash out" loan payments.

The required ending balance on this "cash out" loan amount due at the time the property will be sold is $ __________. Round to whole dollar, and do NOT use the "$" sign. Put as positive value.

If your resulting incremental annual cost of refinancing of the "cash out" amount is lower than the return you could earn elsewhere on this amount, then getting the "cash out" while refinancing is worth it. This statement is ___________. Type "true" or "false".

2 years ago, you bought the property for $200,000. At that time you took a 80% LTV loan (so, the loan was for $160,000 ) at 8% annual interest rate, for 30 years, requiring monthly payments. Here's the loan amortization table for the first 6 years of that original loan: Today the property is worth double, or $400,000. Today you can refinance the remaining balance at just 6% annual interest rate (again for 30 years, again requiring monthly payments) WITH "CASH OUT", and hold the property for 4 more years. The lender allows the same 80% LTV based on the current property value. Here's the loan amortization table for the first 6 years of this new refinanced loan