The mortgage on your house is $5$ years old. It required monthly payments of $$1,390,$ had an original term of $30$ years, and had an interest rate of $8\%($APR$).$

In the intervening $5$ years, interest rates have fallen and so you have decided to refinance $-$ that is$,$ you will roll over the outstanding balance into a new

mortgage. The new mortgage has a $30-$year term, requires monthly payments, and has an interest rate of $6\mathrm{.}125\%($APR$).$

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 payment should you make after you refinance?

c$.$ Suppose you are willing to continue making monthly payments of $$1,390.$ How long will it take you to pay off the mortgage after refinancing?

d$.$ Suppose you are willing to continue making monthly payments of $$1,390$ and want to pay off the mortgage in $25$ years. How much additional cash can you

borrow today as part of the refinancing?

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

The monthly repayments with the new loan will be $

$($Round to the nearest cent.$)$

b$.$ If you still want to pay off the mortgage in $25$ years, what monthly payment should you make after you refinance?

To pay off the new mortgage in $25$ years, the monthly repayments will be $

$($Round to the nearest cent.$)$

c$.$ Suppose you are willing to continue making monthly payments of $$1,390.$ How long will it take you to pay off the mortgage after refinancing?

To pay off the new loan, it will take approximately

months. $($Round to the nearest whole number.$)$

d$.$ Suppose you are willing to continue making monthly payments of $$1,390$ and want to pay off the mortgage in $25$ years. How much additional cash can you

borrow today as part of the refinancing?

The additional cash you can borrow today is $

$($Round to the nearest cent$)$