The mortgage on your house is five years old It required monthly payments of $1,422, had an original term of 30 years, and had an interest rate of 9 (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) What monthly repayments will be required with the new loan 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 comma 422$1,422 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 comma 422$1,422, 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 ) The mortgage on your house is five years old It required monthly payments of $1,422, had an original term of 30 years, and had an interest rate of 9 (APR) In the intervening five years, interest rates have fallen and so you have decided to refinancethat 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 c Suppose you are willing to continue making monthly payments of $ 1 comma 422$1,422 How long will it take you to pay off the mortgage after refinancing d d Suppose you are willing to continue making monthly payments of $ 1 comma 422$1,422, and want to pay off the mortgage in 25 years How much additional cash can you borrow today as part of the refinancing e (Note Be careful not to round any intermediate steps less than six decimal places )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 26, 2024

The mortgage on your house is five years old. It required monthly payments of $1,422, had an original term of 30 years, and had an

The mortgage on your house is five years old. It required monthly payments of

$1,422, had an original term of 30 years, and had an interest rate of

9% (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).

What monthly repayments will be required with the new loan?
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 comma 422$1,422. 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 comma 422$1,422, 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.)

The mortgage on your house is five years old. It required monthly payments of $1,422, had an original term of 30 years, and had an interest rate of 9% (APR). In the intervening five years, interest rates have fallen and so you have decided to refinancethat 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. c. Suppose you are willing to continue making monthly payments of $ 1 comma 422$1,422. How long will it take you to pay off the mortgage after refinancing? d. d. Suppose you are willing to continue making monthly payments of $ 1 comma 422$1,422, and want to pay off the mortgage in 25 years. How much additional cash can you borrow today as part of the refinancing? e. (Note: Be careful not to round any intermediate steps less than six decimal places.)