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Suppose that 10 years ago you bought a home for $130,000, paying 10% as down payment, and financing the rest at 9% interest for 30
Suppose that 10 years ago you bought a home for $130,000, paying 10% as down payment, and financing the rest at 9% interest for 30 years. a. This year (10 years after) you check your loan balance. You see that you still have $104,633 left to pay on your loan. Your house is now valued at $160,000. How much of the original loan have you 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 years)? d. How much equity do you have in your home? e. If you took out a new 30 year mortgage at 6% for your remaining balance, what would your new monthly payments be? f. How much interest will you pay over the life of the new loan? g. Notice that if you refinance you are going to be making payments on your home for another 30 years. In addition to the 10 years you've already been paying. How much will you save each month because of the lower monthly payment? h. How much total interest will you be paying? (consider the interest you paid for the first 10 years of your original loan as well as your interest on your refinanced loan) any help would be greatly appreciated!! I'm not great at finance
a. This year (10 years after) you check your loan balance. You see that you still have $104,633 left to pay on your loan. Your house is now valued at $160,000. How much of the original loan have you 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 years)?
d. How much equity do you have in your home?
e. If you took out a new 30 year mortgage at 6% for your remaining balance, what would your new monthly payments be?
f. How much interest will you pay over the life of the new loan?
g. Notice that if you refinance you are going to be making payments on your home for another 30 years. In addition to the 10 years you've already been paying.
How much will you save each month because of the lower monthly payment?
h. How much total interest will you be paying? (consider the interest you paid for the first 10 years of your original loan as well as your interest on your refinanced loan)
any help would be greatly appreciated!! I'm not great at finance
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