49. [1/4 Points] DETAILS MY NOTES TANFIN12 5.3.050. PREVIOUS ANSWERS ASK YOUR TEACHER PRACTICE ANOTHER Five...
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49. [1/4 Points] DETAILS MY NOTES TANFIN12 5.3.050. PREVIOUS ANSWERS ASK YOUR TEACHER PRACTICE ANOTHER Five years ago, Diane secured a bank loan of $320,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 5%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to 1.5%/year compounded monthly, Diane is thinking of refinancing her property. (Round your answers to the nearest cent.) (a) What is Diane's current monthly mortgage payment? $ 1717.83 (b) What is Diane's current outstanding principal? $294,374.68 (c) If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 1.5%/year compounded monthly, what will be her monthly mortgage payment? $ 1527.45 (d) How much less will Diane's monthly mortgage payment be if she refinances? $ 190.38 49. [1/4 Points] DETAILS MY NOTES TANFIN12 5.3.050. PREVIOUS ANSWERS ASK YOUR TEACHER PRACTICE ANOTHER Five years ago, Diane secured a bank loan of $320,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 5%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to 1.5%/year compounded monthly, Diane is thinking of refinancing her property. (Round your answers to the nearest cent.) (a) What is Diane's current monthly mortgage payment? $ 1717.83 (b) What is Diane's current outstanding principal? $294,374.68 (c) If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 1.5%/year compounded monthly, what will be her monthly mortgage payment? $ 1527.45 (d) How much less will Diane's monthly mortgage payment be if she refinances? $ 190.38
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