Interest rate for 15yr loan: 5.5%

Interest rate for 30yr loan: 6%

Closing Costs: 3%

Balance on Current Mortgage: 148,944

Payments made on current mortgage: 29

Savings Account Balance: 13,500

9. Determine whether the Reddings will currently qualify to refinance their home. Is the house eligible for refinancing by a lender requiring a maximum loan-to-value ratio of 80%? How much cash would the Reddings need if they refinance? Personal Financial Planning: Cases and Applications, 8th Edition 10. Assuming that the Reddings decide to use their savings account to pay down the mort- gage so they are able to refinance their current mortgage calculate the monthly pay- ment for each of the terms below. For purposes of this question, disregard whether the Reddings qualify to refinance their home. Assume they maintain the lender's loan-to- value ratio requirement. a. 15-year loan b. 30-year loan paid over 30 years C. 30-year loan paid over the remaining life of their current mortgage Home Benjamin and Sarah purchased a four-bedroom house for $170,000 in a nice fam- ily neighborhood. They were among the first families to purchase a home in this new subdivision. The money received from Sarah's parents as a wedding gift was used for the down payment. The mortgage payment is $1,066.52 per month. The interest rate is 7.5%. The original mortgage was $152,531.47, and they have made 29 payments. Utilities range from $400-500 per month. Although the original value of the house was $170,000, a recent appraisal valued the house at $149,000. The decrease in value did not leave enough equity for the Reddings to be approved for a home equity loan. If the Reddings wanted to refinance (80% of the fair market value of the home), the 3% closing costs would have to be paid at closing and not financed