Mortgage Amortization 207 j 2 =4.2\% A $450 000 mortgage at is amortized over 25 years by monthly a ) Determine the regular monthly payment and the smaller final payment . payments . b) Determine the total interest (total cost of financing ) . Show the first three lines of the amortization schedule . d) Determine the outstanding balance after 2 years. e) Determine the total principal and the total interest paid in the first 2 years .Suppose you paid an extra $10000 after 2 years . How much interest would this save over the life of the mortgage ? g) How much less interest would be paid if the mortgage could be amortized over 20 years rather than 25 years ? h ) In the 25-year mortgage , after 2 years interest rates drop to j 2 =3.3\% There is a penalty of 3 months' interest on the outstanding balance for early repayment . Does it pay to refinance ?