Question: Assume you have a 3 0 - year fixed - rate mortgage of USD 5 0 0 , 0 0 0 at an interest rate

Assume you have a 30-year fixed-rate mortgage of USD 500,000 at an interest rate of 6%, with a remaining balance of USD 475,000. If you refinance the remaining balance at 4% for 15 years, by approximately how much will your monthly mortgage payment change?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Please solve using cocalc / Python 3 (system-wide) 1 Introduction While paying off a home mortgage loan, borrowers will often receive offers to refinance their loan. When refinancing a loan, a...

Q:

A whole buyer brought a house for 2 4 5 0 0 0 the buyer paid 1 2 % down, but decided to find this calls and calls of 3 % of the mortgage amount if the barriant took out a 3 0 year fixed rate mortgage...

Q:

You borrowed $325000 using a 30- year fixed rate mortgage with a 5.25% interest rate. A) what is your schedule monthly payment? B) what is the amount of interest and principal paid with the first...

Q:

Jen has a 15 year fixed rate mortgage with a 5% rate and $100,000 loan. David has a 15 year ARM on a $100,000 loan and an initial rate of 5%. After 3 years David's rate adjusts to 4% and remains...

Q:

Jane wants to buy a townhouse that costs 91 000 The bank requires a 10 down payment The rest is financed with a 15 year fixed rate mortgage at 5 annual interest with monthly payments Complete the...

Q:

You purchase a $325,000 town home and you pay 25% down. You obtain a 30 year fixed rate mortgage with an annual interest rate of 5.75%. After 5 years you refinance the mortgage for 25 years at a 5.1%...

Q:

two pictures ones good vears? Scenario 1: Y Fanh. Sernurio 2: lode and pay 51.902 per manth tor the tant 15 years The clatine costs ter the it 4 hanct are 82.900. How much will Dani save by...

Q:

A homeowner can obtain a $645,000 thirty year fixed rate mortgage at an annual interest rate of 6.25% with zero points or at an annual interest rate of 5.75% with 2.65 points. What is the NPV of...

Q:

PLEASE HELP Your client wants to know how much they will be able to spend on a house. They have an annial income of $120000, and they have saved up 530.000, the remainder of which they will 5 pend on...

Q:

complete the first question then double check the second question to see if its 1% You wish to purchase a property for $400,000. You intend to make a 20% downpayment and you have the money to do so....

Q:

Supply the missing dollar amounts for the 2014 statement of earnings of BGT Company for each of the following independent cases. (Hint: Organize each case in the format of a classified or multi-step...

Q:

ABC Company supplies furniture tables to their customers. The annual demand is 1000 units. The average holding cost is SR 5 per unit per year and ordering cost is SR 625 per order. Find EOQ, Annual...

Q:

There are two sections of this Part. First section (Part A) is to calculate Beta () (Extract) (systematic risk) of a selected ASX listed company using 10 years' quarterly data. The second section is...

Q:

Discuss qualitative research designs in detail?