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You purchased a hoe 3 years ago for $200,000 and borrowed the entire amount from Broadway Bank at an APR of 6% with monthly payments.
You purchased a hoe 3 years ago for $200,000 and borrowed the entire amount from Broadway Bank at an APR of 6% with monthly payments. The original maturity of your mortgage was 39 years, a. Draw a line that depicts the cash flows from the mortgage payments from when you bought your home. Compute the outstanding mortgage amount today (Show the timeline with the balne today and Give the inputs to your computations for full credit) b. The financial crisis has reduced mortgage rates Suppose you refinance your mortgage today with a mortgage maturity equal to the remaining time on your current mortgage at an APR 3% and monthly payments. What is the present value of your savings if refinancing will incur closing cost of $2,500? You purchased a hoe 3 years ago for $200,000 and borrowed the entire amount from Broadway Bank at an APR of 6% with monthly payments. The original maturity of your mortgage was 39 years, a. Draw a line that depicts the cash flows from the mortgage payments from when you bought your home. Compute the outstanding mortgage amount today (Show the timeline with the balne today and Give the inputs to your computations for full credit) b. The financial crisis has reduced mortgage rates Suppose you refinance your mortgage today with a mortgage maturity equal to the remaining time on your current mortgage at an APR 3% and monthly payments. What is the present value of your savings if refinancing will incur closing cost of $2,500
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