Tutor Question: Among the 4 alternatives listed above, discuss which on is most beneficial?

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You plan to refinance your property valued at $300,000. You are considering the following alternatives. Use the given information in the worksheet as Absolute References to calculate the "Loan Payment Schedule" for each alternative:

Alternatives:

1. 30 year fixed mortgage rate of 3.8 %
2. 15 year fixed mortgage rate of 3.2 %
3. 30 year fixed mortgage rate of 3.8 % with additional monthly payment of $300.00 to the principal
4. 15 year fixed mortgage rate of 3.2 % with additional monthly payment of $300.00 to the principal

30 YEARS LOAN PLAN at 3.8% Fixed 15 YEARS LOAN PLAN at 3.2% Fixed Use the follwing information as Absolute Reference in calculations Use the follwing information as Absolute Reference in calculations Loan Amount / Annual Interest Interest Rate Months to New Plan: Additional Monthly Payment to Loan Amount / Annual Interest Interest Rate per Months to Pay Principal (PV) Rate per Month (RATE) Pay (NPER) Principal * Principal (PV) Rate Month (RATE) (NPER) $300,000.00 3.80% 0.32% 360 $300.00 $300,000.00 3.20% 0.27% 180 * starting on 2nd Month Payment Schedule for 30-year Loan at 3.8 % Fixed Payment Schedule for 15-year Loan at 3.2% Fixed