$(20)$

You borrow $$200,000$ to buy a house. You have an $8\%30-$year fixed$-$rate mortgage. The mortgage requires monthly payment.

Answer the following questions $(5$ points each$)$:

What is the monthly payment?

How much of the principal is still owed after $5$ years?

What happens if you pay, say, $$1,\frac{800}{?}$ month? How much faster do you pay off the loan?

After $5$ years, mortgage rate falls to $6\%($for a $25-$year loan$).$ Should you refinance your mortgage? Assume that the fee to process the refinancing is $$1,200.$

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