Question
***I NEED THESE CALCULATIONS DONE IN EXCEL PLEASE*** Rachel and Tom Baker are your friends with whom you have attended the same Bible study for
***I NEED THESE CALCULATIONS DONE IN EXCEL PLEASE***
Rachel and Tom Baker are your friends with whom you have attended the same Bible study for several years. You are a mortgage originator for the XYZ Mortgage Brokerage, Inc., and the Bakers have come to you for advice concerning the possibility of refinancing their existing mortgage. Their current 30-year, fixed rate mortgage was originally issued for $300,000 at a rate of 6.000%. They have owned their home for 15 years and their current mortgage balance is $213,150. You have identified the following mortgage options for the Bakers:
30-Year Fixed Rate; 5.125%; $1,000 cash required at closing
15-Year Fixed Rate; 4.500%; $5,000 cash required at closing
5/1 ARM; 4.375% (2% cap per year; 10% life); $4,500 cash required at closing
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