1. Brian decides he will be happy with the $250,000 house and determines that he can afford the monthly payments from the 15 year mortgage. Look at Question 1 for the information on this scenario.

   Five years into his 15 year mortgage, Brian decides to refinance. Brian has been making his monthly payments on time for the last 5 years and has maintained his good credit rating. A competing bank offers to refinance his mortgage at 1.5%. This means that they will take over the loan from the original lender and Brian will make a new monthly payment to them based on the new interest rate. Why would they want to do this? Brian gets a better interest rate, and this competitor gets the interest from his loan instead of the original lender.

   Question 8a) To start, how many months are there in 5 years?

   Question 8b) The answer for Question 8a is also how many payments Brian has made so far. Plug the information from Question 1 back into the loan calculator. Using the amortization table it generates, what is the balance on the loan after 5 years?

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   Question 8c) How much has Brian actually paid to the original lender after 5 years including interest? To find this, we can multiply the answers from 8a and 1c.

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   Question 8d) Brian would like to have the loan paid off at the same time as planned, which is now in 10 years. How many months are there in 10 years?

   Question 8e) Using the answer from Question 8b as the new Loan Amount, the answer from 8d as the new number of months, and the new interest rate of 1.5%, what will his new monthly payment be?

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   Question 8f) How much money total will he pay the new lender over the remaining 10 years? Use the answers from 8d and 8e.

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   Question 8g) Lets put that together with what he already paid for the first 5 years. How much is the total for the whole 15 year period? To do this, add your answers from 8c and 8f.

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   Question 8h) How much of that money is interest? To do this, take your answer from 8g minus your answer from 1a.

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   Question 8i) How much did Brian save by refinancing? To do this, take your answer from 1e minus your answer from 8h.

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