The mortgage on your house is five years old. It required monthly payments of $1,422, had an
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/667bf7aea2b05_366667bf7ae8443d.jpg)
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.)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/667bf7af03a7e_366667bf7aee7091.jpg)
Posted Date: