Assume Jeff and Linda have been making fortnightly payments of $814.02 on a 25 year mortgage of $400,000 at a fixed interest rate of 2.35% p.a. for a two-year term for the past two years. The principal owing at the expiration of the two-year term is $375,920.22 and the mortgage now has a remaining term of 23 years.

Calculate the new fortnightly payments if they sign for 

(a) two-year fixed rate loan at 4.54% p.a.

(b) a five-year fixed rate loan at 5.44% p.a.

Answer rating: 100% (QA)

To calculate the new fortnightly payments for Jeff and Lindas mortgage well need to use the given information and formulas for mortgage calculations L... View the full answer