Suppose the APR is 6% when you purchased your house 10 yearsago. The house price is 300K but the down payment is 20% and therest you borrowed from the bank.

1.) What is your monthly mortgage payment if you applied for a30 year mortgage.

2.) How much do you still owe to the bank if you want to payyour mortgage off today?

3.) You are considering refinancing your mortgage rate but youstill want to pay off all your mortgage in 20 years. The bankquotes you the 20 year mortgage rate is 5% but the refinance costyou $5,000 transaction fee. Considering the potential interestsaving, is it worthy for you to do refinance or not today?

Show calculations