Question
Dr. Jun bought a $330000 house 7 years ago. The house is now worth $627000. Originally, the house was financed by paying 35% down with
Dr. Jun bought a $330000 house 7 years ago. The house is now worth $627000. Originally, the house was financed by paying 35% down with the rest financed through a 20-year mortgage at 6% interest. After making 84 monthly house payments, he is now in need of cash, and would like to refinance the house. The finance company is willing to loan 85% of the current value of the house amortized over 25 years at 4% interest. How much cash will Dr. Jun receive after paying the balance of the original loan? Amount of cash obtained = $__________ If he uses all of the available cash for something other than investing in his home, by how much will his monthly payment increase? Increase in monthly payment = $__________
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