The couples mortgage is coming up for renewal. They borrowed $289,750 five years ago at a rate of 2.59%, compounded semi-annually. Their financial institution has offered them a renewal rate of 1.69%, compounded semi-annually, for a new 5-year term. Their original amortization period was 25 years. They would renew their mortgage for the remaining 20 year amortization, but instead of bi-weekly payments, they would opt for monthly payments.

What will be the couples new monthly mortgage payment if they accept the terms offered by their financial institution?

Calculation of mortgage balance

Calculation of new monthly payment