The mortgage on your house in Halifax is 5 years old. It required monthly payments of $1,402., had an original term of 30 years, and had an interest rate of 9% (APR with semi-annual compounding). In the intervening 5 years, interest rates have fallen, housing price in the United States have fallen, and you decided to retire in Florida. You have decided to sell your house in halifax and use your equity for the down payment on a condo in florida. You will roll over the outstanding balance of your old mortgage into a new mortgage in florida. The new mortgage has a 30 year term, requires monthly payments, and has an interest rate of 6.625% (APR with monthly compounding, which is typical for U.S mortgages).

a. What monthly repayments will be required with the new loan?

b. If you still want to pay off the mortgage in 25 years, what monthly payments should you make on your new mortgage?

c. Suppose you are willing to continue making monthly payment of $1,042. How long will it take you to pay off the new mortgage?