Refin

1a 1 7 years ago a fixed rate mortgage for $ 100,000 was issued which would fully amortize monthly in 20 years. The contract rate was 8%. Refinancing costs $. 3,000 Now tha rates have fallen to 6%. What is the monthly payment? What is the loan balance? What is the Break-even rate for refinancing? BER 1b 1 1c 2 id 1 Is refinancing a good idea? 2 2a 2 Independent of your answer in 1d., let's say, you opt for refinancing. If refinancing means a full cash-out, how much will it be? What is the loan value now given the new rate? PV based on new rate Refinanced PV Cash Out 2b 2 3 3a 1 Suppose refinancing means maximum reduction in the payment What is the new payment? New Payment % Reduction 3b 2. 4 4a 1 Suppose refinancing means maximum reduction in the number of payment. How many payments are left? New remaining Payment original remaining payments 4b 2 How many payments were reduced? 1a 1 7 years ago a fixed rate mortgage for $ 100,000 was issued which would fully amortize monthly in 20 years. The contract rate was 8%. Refinancing costs $. 3,000 Now tha rates have fallen to 6%. What is the monthly payment? What is the loan balance? What is the Break-even rate for refinancing? BER 1b 1 1c 2 id 1 Is refinancing a good idea? 2 2a 2 Independent of your answer in 1d., let's say, you opt for refinancing. If refinancing means a full cash-out, how much will it be? What is the loan value now given the new rate? PV based on new rate Refinanced PV Cash Out 2b 2 3 3a 1 Suppose refinancing means maximum reduction in the payment What is the new payment? New Payment % Reduction 3b 2. 4 4a 1 Suppose refinancing means maximum reduction in the number of payment. How many payments are left? New remaining Payment original remaining payments 4b 2 How many payments were reduced