Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need this done very fast. thank you QUESTION 31 13 Work through the following mortgage scenario with Four (4) parts: 1. Borrower has a

i need this done very fast. thank you
image text in transcribed
QUESTION 31 13 Work through the following mortgage scenario with Four (4) parts: 1. Borrower has a 30-year mortgage at 6% based on 5600,000 What is the monthly payment (principal and interest payment of this mortgage? (4 points) 2 After years, what is the remaining balance? (3 points) 3. At the end of the eighth year ( based on remaining balance found in Number 2 above), the borrower has the ability to refinance that remaining balance with a mortgage with an interest rate of 4% of the balance in Number 2 above is refinanced with a 20-year mortgage with an interest rate of 4%, what would the new monthly payment principal and interont pay the new loan? (3 points) 4. Assuming that there is a prepayment penalty of $8,000 to pay off the original mortgage used in Number 1 (based on 30 years, 6%. $600,000) and $6,000 in cost the new loan, how many months would you need to hold the property with the new mortgage as described in Number 3 to offset the costs of the rofinance? (3 point Answer all four questions in the space provided For the toolbar.press ALT.FIOPOO ALTERNARD

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

Intermediate Financial Theory

Authors: Jean-Pierre Danthine, John B. Donaldson

2nd Edition

0123693802, 978-0123693808

More Books

Students also viewed these Finance questions

Question

Write as the sum 64 log4 I N

Answered: 1 week ago