Question
Exactly six years ago, Cathy bought her dream home using a 30-year mortgage with an APR of 6.5% on a $230,000 loan. She has been
Exactly six years ago, Cathy bought her dream home using a 30-year mortgage with an APR of 6.5% on a $230,000 loan. She has been making her monthly payments. Today, she came to know that her bank is offering a special mortgage refinance offer at an APR of 4.25% on 20-year mortgages. How much will Cathys monthly payment change, if she decides to refinance today?
| Original loan | |||
| Years Ago (N) | 6.00 | years | |
| Term (years, N0) | 30.00 | years | |
| APR (R0) | 6.50% | annual | |
| Loan Amt (PV0) | $ 230,000.00 | ||
| ($17,612.81) | |||
| New Loan | |||
| Term (years, N1) | 20.00 | years | |
| APR (R1) | 4.25% | annual | |
| ($17,300.56) | |||
| Monthly savings (Excel) | increase/decrease by | ???? | |
| Monthly savings (VBA) | increase/decrease by | ???? | |
| Monthly savings (Math, Extra Credit)) | increase/decrease by | ???? |
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The Financial Services Marketing Handbook
Authors: Evelyn Ehrlich
2nd Edition
1118065719, 978-1118065716
