The payment on your house is five years old. It has 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 5.625% (APR).

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

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

c. If you are willing to continue making monthly payments of $1,422.How long will it take you to pay off the mortgage after refinancing?

d. If you are willing to continue making monthly payments of $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?