Question: Could someone help me work this problem out in excel please? Q4 Suppose you purchased a house 7 years ago and took out a mortgage

Could someone help me work this problem out in excel please?

Q4 Suppose you purchased a house 7 years ago and took out a mortgage for $300,000 with a 9% interest rate. The mortgage is a 30 year mortgage with monthly payments. Today you can refinance the loan at a 7.6% interest rate for a fee of $4,500. Assume that you would borrow just enough to repay the old loan, and you woud pay the fee out of pocket. Annual Rate Life (In Years) Loan Amount Monthly Payments Periods Paid Fee Initial Loan Refinancing 9.0% 7.6% 30 $ 300,000.00 30 84 $ 0 $4,500.00 If you refinance at the new rate, how much will you save per month? Monthly Savings If you expect to move in 3 years, would you want to refinance? Years Months 36 Time Till Move 3 Old Loan New Loan Loan Balance at Move NPV of Refinancing Refinance

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!

Joanne is in the 24% tax bracket and owns depreciable business equipment that she purchased several years ago for $135,000. 4. LO.2, 3, 5, 8 Joanne is in the 24% tax bracket and owns depreciable...

Hello! I am really struggling with this tax problem, the problem: is with the information given fill out the following tax forms. I am desperate for help! Below the problem is Form 1040, Schedule A,...

Need help figuring out problem #40, #42, and #45 in the attached document. I have the answers for the problems, but need to see how they are worked out. FIN 142 - Real Estate Finance Problem Set 2 1....

PART ONE Albert [last name of student completing assignment] and his wife Allison [last name of student completing assignment] are married and file a joint return for the current year. Albert's...

Solve the attached document for tax with 2015 forms. Chapter 1 Dr. Ivan I. Incisor and his wife Irene are married and file a joint return for 2015. Ivan's Social Security number is 477-34-4321 and he...

Problem 3: Chapter 8: Capital Gains Instructions: Mr. Geoffrey Guo had a variety of transactions during the 2019 year. Determine the total taxable capital gains included in Mr. Guo's division B...

Hi I would like to have a copy of this set of questions which you have answered them last week. Please find the attached. Thanks! COR167e Managing Your Personal Finances Tutor Marked Assignment 02...

Mr. Geoffrey Guo had a variety of transactions during the 2019 year. Determine the total taxable capital gains included in Mr. Guo's division B income. The transactions included: 1. On January 1,...

You are evaluating an investment opportunity that costs $1,000 today, for which you expect to receive $400 in one year and $750 in two years. The appropriate discount rate is 8%. Should you make the...

Refer to the XYZ Company example in the chapter and the results in Panels A and B of Exhibit 12.7. On the basis of this information, management of the company has decided to delay the implementation...

assuming that 20 people participated in a weight loss program for 6 months Each persons weight before and after the program is determined and recorded The following summarizes the results for the 20...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...