QUESTION $31$

Work through the following mortgage scenario with Four $(4)$ parts:

Borrower has a $30-$year mortgage at $6\%$ based on $$640,000.$

What is the monthly payment $($principal and interest payment$)$ of this mortgage? $(4$ points$)$

$2.$ After $7$ years, what is the remaining balance? $(3$ points$)$

$3.$ At the end of the seventh year $($ based on remaining balance found in Number $2$ above$),$ the borrower has the ability to ref mortgage with an interest rate of $4\%.$

If the balance in Number $2$ above is nanced with a $20-$year mortgage with an interest rate of $4\%,$ what would the new monthl the new loan? $(3$ points$)$

$4.$ Assuming that there is a prepayment penalty of $$10,000$ to pay off the original mortgage used in Number $1($based on $30$ the new loan, how many months would you need to hold the property with the new mortgage as described in Number $3$ to of Answer all four questions in the space provided.

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