Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone answer all parts please larry has a mortgage for $711,329.00. The term of the mortgage is 3 years, and the amortization period is

image text in transcribedcan someone answer all parts please

larry has a mortgage for $711,329.00. The term of the mortgage is 3 years, and the amortization period is 25 years. Iarry will make monthly payments and the mortgage rate is r2) = 5.000%. After 1 years, the interest rate drops to 3.750% compounded semi-annually, and he decides to refinance his loan. In order to refinance, she has to pay a penalty of 3 months interest (based on the original interest rate), which is added to the outstanding balance on the new mortgage. a) What is the outstanding balance at the time larry decides to refinance (not including the penalty)? $ b) What is the amount of the penalty? $ c) The new mortgage has is for the outstanding balance plus the penalty. The term is 2 years, and the amortization period is 24 years. What are the the new monthly payments? $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Financial Markets And Institutions

Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts

8th International Edition

1265561435, 9781265561437

More Books

Students also viewed these Finance questions

Question

How does your language affect the way you think?

Answered: 1 week ago