It is 1980 and you are wanting to step up from your starter home. Your family has grown, and you need the room. You have found a house you like and think you could purchase it for $165,000. You have equity of $15,000 after paying off the mortgage on your current home to put down on your new home. You want to keep your payments as low as possible, so you are going to finance with a 30 year mortgage at 12.25%

After being in the house for 6 years (72 months), mortgage interest rates have declined to 8.25%. If you refinance the outstanding mortgage balance using a new 30 year.

What will your balance be after six years?

What will be your new mortgage payment be?