The Plant's mortgage is renewing in 12 months. What would be the impact of the each of these three scenarios on what the Plant's would now owe on their mortgage? Show your work and provide the correct answer for each scenario.

a) The Plant's agree that they could change their payment frequency to accelerated biweekly. How would this impact their cash flow and amortization? How much would they potentially save in interest?

b) The Plant's could "blend and extend" their existing mortgage with a new 5-year mortgage rate of 4.79%. What would their new rate be?

c) The Plant's have been offered a 5 year 2.79% rate for their mortgage if they refinance. Should they go ahead with the refinance? Include a break-even analysis that will help the Plant's make the decision.

Note: Use the format N= , I/Y= , PV= , PMT= , FV= when showing your work.

Part 2: Pulling it All Together (3 marks)

Prepare a paragraph for the Plant's that summarizes:

What you suggest they do with their mortgage based on the above information

How it will this impact their Cash Flow and/or Net worth

To what goal can they allocate the additional savings