The mortgage on your house is five years old. It required monthly payments of $1,402, 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 6.625% (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 $1,402. How long will it take you to pay off the mortgage after refinancing? d. Suppose you are willing to continue making monthly payments of $1,402 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 S. (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? The monthly repayments will be S. (Round to the nearest cent.) c. Suppose you are willing to continue making monthly payments of $1,402. How long will it take you to pay off the mortgage after refinancing? It will take approximately months. (Round to the nearest integer.) d. Suppose you are willing to continue making monthly payments of $1,402 and want to pay off the mortgage in 25 years. How much additional cash can you borrow today as part of the refinancing? You can keep $. (Round to the nearest dollar.) The mortgage on your house is five years old. It required monthly payments of $1,402, 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 6.625% (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 $1,402. How long will it take you to pay off the mortgage after refinancing? d. Suppose you are willing to continue making monthly payments of $1,402 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 S. (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? The monthly repayments will be S. (Round to the nearest cent.) c. Suppose you are willing to continue making monthly payments of $1,402. How long will it take you to pay off the mortgage after refinancing? It will take approximately months. (Round to the nearest integer.) d. Suppose you are willing to continue making monthly payments of $1,402 and want to pay off the mortgage in 25 years. How much additional cash can you borrow today as part of the refinancing? You can keep $. (Round to the nearest dollar.)
