Question: The mortgage on your house is five years old. It required monthly payments of $2105, had an original term of 30 years, and had an

The mortgage on your house is five years old. It required

The mortgage on your house is five years old. It required monthly payments of $2105, had an original term of 30 years, and had an interest rate of 6% (APR). In the intervening five years, interest rates have fallen and so you have decided to refinance-that is, you will roll over the outstanding balance into a new mortgage. The new mortgage has a 25-year term, requires monthly payments, and has an interest rate of 3.5% (APR). Suppose you are willing to continue making monthly payments of $2105 and want to pay off the mortgage in 25 years. How much additional cash can you borrow today as part of the refinancing? $91,176.28 $93,765.16 $34,219.49 $51,362.00

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