Mortgage Refinance Suppose you friend April is considering to refinance her mortgage. She bought her house 60 months ago. The amount of loan equals $202,000. She paid cash to cover the 5% down payment plus all required closing costs (closing costs include application fee, appraisal fee, loan onigination foes and other costs, usually about 3%5% of the loan amount) Since she had a decent credit history and relatively stable income, her mortgage nte was 6.25% for 30 years at the time of the purchase, Since her down payment was less than 20%, she had to pay monthly mortgage insurance premium which is $90 per month (premiums are automatically terminated when the LTV ratio (loan-to-value ratio) falls below 80% ) Recently, mortage rate has been dropping and she is considering to refinance her mortgage. She talked with a mortgage banker and got the following information: a) 5.75%30 year conventional loan with out-of-pocket closing costs of $2,000. b) 55%30 yeat conventional loan with out-of-pocket closing costs of $3,000; c) $.25%,30 year conventional loan with out-of-pocket closing costs of $4,000 Based on the recent appraisal, her house value has changed to $250,000 Please advise ber on the following: 1) Based on the information, please calculate ber monthly mortgage payment on the original loan. Pleaso show your process. 2) Please use online resources to show her amortization table (please only print out ber first 60 payments on the amortimation table). How much principle has she paid off so far? How mach interest has she paid over the past 60 payments? 3) How much does she thed to refinance nown Hint: You need to find her loan balance 4) Based on the new apprassal value, what is her LTV (loan-to-value) ratio now? 5) Does she still need to pay the mortgage insurance premium after refinancing? Why? 6) How mech should her monthly payment be under each option (a, b, and c)? Show your calculations. 7) Would you suggest her to do the refinancing or not? Why? Notice that monthly payment is reduced but she need to make 360 payments plus closing costs under the new mortgage versus 300 payments in the old mortgage. 8) Which option would you suggest her to take? What factors would affect her choice and how