I need help on how to answer these questions. Thank you so much.

Information:

I. Given for the case:

Housing payment to income (HTI) <36%

Total Debt to income (DTI) < 43%

Loans available:

Conventional Loans requires 20% down payment,

i. 30 year fixed rate mortgage= 4.00%; credit score > 680

ii. 10/1, rate is fixed for 10 years, then can adjust once per year thereafter, rate=3.625%, loan amortizes on a 30 schedule; credit score >720

2. Government Sponsored Loans requires at least 3.5% down payment, minimum credit score 620

i. FHA 30 year fixed rate mortgage =3.875%; Mortgage insurance Premium= 0.055% of the loan amount and paid monthly

ii. FHA 15 year fixed rate mortgage =3.125%

4) Real Estate appreciation in the local area is averaging 7.5% growth year over year

5) Real Estate property tax rate in the local area is 1.25% of the purchase price paid annually

Scenario:

Jane and John Doe are considering buying their first home. First they have to compare renting versus buying. Apartments near their work places go for $1,900 for a two bedroom, 2.0 baths. There is no rent control for the area. Condominiums with similar square footage and number of bedrooms and bath rooms are selling for $300,000 with home owner association dues of $372 per month, which includes property insurance.

Given:

Income and debt:

Combined yearly income $90,000

Credit card debt= $300/month

Student loans= $920/month on $110,000 @ 8.00%

Credit scores and savings:

Equifax score = 740, 715, respectively

Transunion = 690, 710, respectively

Experian= 680, 685, respectively

Savings =$75,000

QUESTIONS:

1) If the Does paid an extra $250 per month and applied it to principal, how much interest would they save over the life of the loan? Graph the comparison of extra payments versus no extra payment decline of the loan balance over time

After five years the condominium has a comparative market value on Zillow for $435,000

2) How much would interest rates need to decrease to justify a refinance given a cost to refinance at $3,600 and the new mortgage will have a term of 30 years versus the 25 years that remain on the current loan?

3) Should the Does use the refinance opportunity to pay off their student loans and any credit card debt, thus adding to the principal? What would be the tax advantage of consolidating the debt and adding the student loan to increase the mortgage principal?

4) What is the payback period in months if there is a refinance, chart this information? How much total interest will be saved if refinanced at the new rate?

5) Under what circumstances would the Does want a loan with a higher interest rate than their current loan?