Problem $4-6$

A $30-$year fully amortizing mortgage loan was made $10$ years ago for $$85,000$ at $6$ percent interest. The borrower would like to prepay the mortgage balance by $$12,000.$

Required:

a$.$ Assuming he can reduce his monthly mortgage payments, what is the new mortgage payment?

b$.$ Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity?