Question
Mina's condo is worth $550,000. She owes $200,000 on her 7% fixed-rate mortgage compounds semiannually that has three years remaining in its term. She pays
Mina's condo is worth $550,000. She owes $200,000 on her 7% fixed-rate mortgage compounds semiannually that has three years remaining in its term. She pays $2000 per month towards it. She also has the following debts: $20,000 unsecured line of credit at 8% with a monthly payment of $750. $20,000 on a student loan at 7%, with a monthly payment of $250 $10,000 credit card at 20% with a monthly payment of $300. She has already used up her prepayment privileges for the year. She can get a new mortgage at 4% or add funds to her existing mortgage at a rate of3%. Mina has a conventional mortgage charge against her property. Her lender charges $300 to discharge any mortgage and $500 to set up new legal documents for any mortgage. Use round numbers for dollars (i.e. $5678 vs 5,678.99) and do not use commas in numbers. Use 3 decimal places for percentages (i.e. 5.098% vs 5%)
1) Find the amortization of the current mortgage. b) Find the prepayment penalty for the current mortgage. (Calculate both options) 2-1) Three-Months Interest 2-2) Interest Rate Differential c) Find the total amount for the New Mortgage Amount? d) Find the payment if the penalty is paid and a new mortgage is set up? e) Find the New Mortgage amount if the mortgage is blended and extended? f) Find the interest rate if the mortgage is blended and extended? g) Find the payment if the mortgage is blended and extended h) Determine the total current monthly debt costs? i) Find the total cost savings per month with the lowest Rate?
NEEDED ASAP
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started