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please help me with question 1 to 3 Mumammad and Samira are a married couple with two children aged 10 and 12. The bought their
please help me with question 1 to 3
Mumammad and Samira are a married couple with two children aged 10 and 12. The bought their home in 2015 for400,000 and had taken out a mortgage for $360.000. The current value of the home is $800,0DO and their current mortgage balance has come down to $320,000. The current mortgage term is expiring on Dec 2023 (round off to one year). During this period their debts have gone up as follows:
They have been considering refinancing their mortgage and have been advised by tneir Dank urat ulcy can get a 5 year fixed term mortgage at 5%. They have sufficient income to qualify for higher mortgage to 80% of the current market value of the home. Should they decide to refinance they would also like to top up their RRSP contributions (total $40,000 ). They would like to also invest $30,000 for post secondary education of their children and keep the rest of the funds as emergency reserve. Q1: If they go for a mortgage for 80% of the current market value, how much would be their monthly mortgage payment considering 30 years amortization and 5% annual interest compounded semiannually? Basic TVM calculation Q2. how would their monthly cash flow be impacted, assuming that all debts are paid off from the proceeds and all other household expenses remain unchanged? Calculate the cash out flow now and after the mortgage refinance Q3. What would the effect on the total interest charges on all debts including mortgage over the next one year. Calculate total of all interest paid now for one year on all individual debts and interest paid on the new mortgage after refinance. See the difference. They have been considering refinancing their mortgage and have been advised by tneir Dank urat ulcy can get a 5 year fixed term mortgage at 5%. They have sufficient income to qualify for higher mortgage to 80% of the current market value of the home. Should they decide to refinance they would also like to top up their RRSP contributions (total $40,000 ). They would like to also invest $30,000 for post secondary education of their children and keep the rest of the funds as emergency reserve. Q1: If they go for a mortgage for 80% of the current market value, how much would be their monthly mortgage payment considering 30 years amortization and 5% annual interest compounded semiannually? Basic TVM calculation Q2. how would their monthly cash flow be impacted, assuming that all debts are paid off from the proceeds and all other household expenses remain unchanged? Calculate the cash out flow now and after the mortgage refinance Q3. What would the effect on the total interest charges on all debts including mortgage over the next one year. Calculate total of all interest paid now for one year on all individual debts and interest paid on the new mortgage after refinance. See the difference
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