Question: Need help with last two and I included the work for the first two. Also please include work :) Suppose that 10 years ago you





Need help with last two and I included the work for the first two. Also please include work :)
Suppose that 10 years ago you bought a home for $110,000, paying 10% as a down payment, and financing the rest at 9% interest for 30 years. (a) Let's consider your existing mortgage: (i) How much money did you pay as your down payment? () How much money was your mortgage for? (ii) What is your current monthly payment? (iv) How much total interest will you pay over the life of the loan? (b) This year, you check your loan balance. As we've discussed, only part of your payments , have been going to pay down the loan; the rest has been going towards interest. You see that you still have $88,536 left to pay on your loan. (i) How much of the loan have you paid off? This is the difference between what you borrowed initially and what you still owe. ) () How much money have you paid to the loan company so far? In other words, what is the total of all of the monthly payments you made over the 10 yeas? (iii) How much interest have you paid so far? Suppose interest rates have dropped and you consider refinancing your mortgage at a 6% rate. (i) If you took out a new 30 year mortgage at 6% for your remaining loan balance of $88,536, what would your new monthly payments be? () How much interest will you pay over the life of the new loan? Notice that if you refinance, you are going to be making payments on your home for another 30 years. In addition to the 10 years you've already been paying, that's 40 years total. (i) How much will you save each month because of the lower monthly payment? In other words, what is the difference in monthly payments between the two loans? (i) How much total interest will you be paying (you need to consider the amount from b- and c-ii above A B $ 110,000.00 10% 9% 30 37230 Cost of home 37231 Down payment 37232 APR 37233 Term 37234 i) Amount of downpayment 37235 ii) Mortgage amount 37236 iii) Current Monthly payment 37237 iv) Total interest paid over life 37238 b) 37239 Amount owed on loan 37240 i) Amount paid off 37241 ii) Total payments over 10 years 37242 iii) Interest paid so far $ $ $ $ 11,000.00 99,000.00 796.58 187,767.50 $ $ $ $ 88,536.00 10,464.00 95,589.17 85,125.17
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