Table 1: Refinance Worksheet
Current Mortgage Loan	Amount	Note
Original amount borrowed	138715
Outstanding balance	133000
Original term (months)	360
Remaining term (months)	300
Annual contract rate	9%	(0.75% per month)
Present payment amount	A
Option 1: New Loan w/o discount points
Initial balance	133000
Term (months)	300
Annual contract rate	5%	(0.417% per month)
New monthly payment	B
Monthly savings compared with existing mortgage	C
Initial cost of refinance
Origination fee	100
Closing costs	3100
Total initial costs	D
Divided by monthly savings	C
Approximate payback period (months)	F
Option 2: New Loan w/ two discount points
Initial balance	133000
Term (months)	300
Annual contract rate	4.50%	(0.375% per month)
New monthly payment	G
Monthly savings compared with existing mortgage	H
Initial cost of refinance
Origination fee	100
Closing costs	3100
Cost of points (2)	K
Total initial costs	L
Divided by monthly savings	H
Approximate payback period (months)	N

Question 1 options:

N (round up the value) =

D =

F (round up the value) =

G =

A =

K =

H =

B =

C =

L =

1.	16
2.	10
3.	5
4.	19
5.	400
6.	338
7.	3200
8.	739
9.	377
10.	2660
11.	5860
12.	1116
13.	778