The Mortgage on your house is five years old. It required monthly payments of $1,390, had an original term of 30 years, and had an interest rate of 10% (APR). In the intervening five 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 6.125% (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?

(Note: be careful not to round any intermediate steps less than six decimal places.)

have to do you have decided to The mortgage on your house is five years old re p orts of $1300 hadanan d had e of APR) in the evening the years, w e refinance that is you will rol over the outstanding balance on the mor e your m e mory , and has an interest 6.125 APRI a. What money repayment will be required with the newloon? b. If you still want to pay of the mortgage in 25 years, what mon payment should you make your face? G. Suppose you are wing to continue making monthly payments of $1,390. How long with you to pay of the mortgage r ang! d. Suppose you are willing to continue making money payments of $1.390, and want to pay of the mortgage in 25 years. How much in cash can you borrowboxy as part of the r acing (Note: Be care of round any informed the deal places) a. What monthly repayment will be r ed with the new The money repayments with the new loan will be undone a n t)