PART 1: This year after buying a house for $140,000 (10 years after you took your first loan of 126,000), you check your loan balance. Only part of your payments have been going to pay the loan; the rest has been going towards your 9% interest of 30 years. You see that you still have $112,681 left to pay on your loan. Your house is now valued at $200,000.

a. How much of the original loan do you have paid off?

b. how much money have you paid to the loan company so far over the last 10 years?

c. How much interest have you paid so far over the last 10 year?

d. how much equity do you have in your home?

PART 2: Since Interest rates have dropped, you consider refinancing your mortgage at a lower 6% rate. if you took out a new 30 year mortgage at 6% for your remaining balance, what would your new monthly payments be?

a. How much interest have you paid so far over the last 10 years?