Kevin Tutumbo of Terre Haute, Indiana, has owned his home for 15 years and expects to live in it for a least five more. He originally borrowed $135,000 at 6 percent interest for 30 years to buy the home. He still owes $96,000 on the loan. Interest rates have since fallen to 4.5 percent, and Kevin is considering refinancing the loan for 15 years. He would have to pay 2 points on the new loan with no prepayment penalty on the current loan. A. What is kevins current monthly payment b. calculate the monthly payment on the new loan. c. Advise Kevin on whether he should refinance his mortgage using the Run the Numbers worksheet, "When You Should Refinance Your Mortgage".

Refinancing a Mortgage, Kevin Tutumbo of Terre Haute, Indiana, has owned his home for 15 yearsand expects to lwe in ir for a least tive more, fie orichilly borrowed $335,000 at 6 percent interent for 30 youn in bay the home. He still owre $90000 on the finan interest rates have since falien to 4.5 percent, and Kevin is considering no prepoyncent penaity on the current loas a. What is Kevirst current munthly naymant? b. Calculate the monthly poyment on the new toan. Refinancing a Mortgage, Kevin Tutumbo of Terre Haute, Indiana, has owned his home for 15 yearsand expects to lwe in ir for a least tive more, fie orichilly borrowed $335,000 at 6 percent interent for 30 youn in bay the home. He still owre $90000 on the finan interest rates have since falien to 4.5 percent, and Kevin is considering no prepoyncent penaity on the current loas a. What is Kevirst current munthly naymant? b. Calculate the monthly poyment on the new toan