JIM AND PAM HELPERT CASE STUDY FOR FINANCIAL PLANNING SERVICES The clients mortgage is renewing in 12 months. What would be the impact of each of the threescenariosontheClientsmortgage?Showyourcompleteworkandprovidethecorrect answer for each scenario.

1. TheClientsagreethattheycouldchangetheirpaymentfrequencytoacceleratedweekly. How many years it will take now to pay-off their mortgage. How much could they potentially save in interest on the TERM of the mortgage? How could this impact

theircashflowandamortization?(Note:YoudonothavetocalculateEFFECTIVEweekly rate)

1. TheClientscouldblendandextendtheirexistingmortgagewithanew5-yearmortgage rate of 4.19%. What would their new interest rate be?

1. The Clients have been offered a 5-year 3.59% rate for their mortgage if they refinance. Includeabreak-evenanalysisthatwillhelptheClientsmakethedecision.Brieflydiscussif the Evans should they go ahead to refinance their mortgage?

Part2:PullingitAllTogether(3 marks)

PrepareaparagraphfortheClientsthatsummarizes:

• Whatyourecommendtheyshoulddowiththeirmortgagebasedontheabove analysis
• HowwillitimpacttheirCashFlowandNet worth
• As their financial planner, what goal(s) will you recommend they direct their savings to and why?