This assignment is a little different than the previous ones, because this one is fairly computational. This question is more like the homework questions.

This assignment is one big question with $13$ parts $-$ each part builds on the previous part. The assignment is set up so you can see the previous and later parts of the assignment, but can submit one part at a time.

The assignment is set up like the skills test, with $3$ attempts, and $30\%$ penalty per missed attempt. However, after the last attempt, the answer will be available via the "Show Answer" button so you can complete the remainder of the assignment.

CorrectQuestion $1$

Check $1/1$ ptRetries $2$

Score on last try: $1$ of $1$ pts$.$ See Details for more.

Suppose that $10$ years ago you bought a home for $$120,000,$ paying $10\%$ as a down payment, and financing the rest at $9\%$ interest for $30$ years.

Your existing mortgage $($the one you got $10$ years ago$)$

How much money did you pay as your down payment?

$

Correct

CorrectQuestion $2$

Check $1/1$ ptRetries $2$

Score on last try: $1$ of $1$ pts$.$ See Details for more.

How much money was your existing mortgage $($loan$)$ for?

$

Correct

CorrectQuestion $3$

Check $2\mathrm{.}1/3$ ptsRetries $1$

Score on last try: $2\mathrm{.}1$ of $3$ pts$.$ See Details for more.

What is your current monthly payment on your existing mortgage?

$

Correct

Note: Carry at least $4$ decimal places during calculations, but round your final answer to the nearest cent.

CorrectQuestion $4$

Check $2/2$ ptsRetries $2$

Score on last try: $2$ of $2$ pts$.$ See Details for more.

How much total interest will you pay over the life of the existing loan?

$

Correct

IncorrectQuestion $5$

Check $0/1$ ptRetries $2$

Score on last try: $0$ of $1$ pts$.$ See Details for more.

You can retry this question below

This year $(10$ years after you first took out the loan$),$ you check your loan balance. 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 $$96,584$ left to pay on your loan. Your house is now valued at $$170,000.$

Your current situation

How much of the original loan have you paid off? $($i$.$e$,$ how much have you reduced the loan balance by$?$ Keep in mind that interest is charged each month $-$ it's not part of the loan balance.$)$

$

IncorrectQuestion $6$

Check $0/1$ ptRetries $2$

Score on last try: $0$ of $1$ pts$.$ See Details for more.

You can retry this question below

How much money have you paid to the loan company so far $($over the last $10$ years$)?$

$

UnattemptedQuestion $7$

Check $0/1$ ptRetries $3$

How much interest have you paid so far $($over the last $10$ years$)?$

$

CorrectQuestion $8$

Check $1/1$ ptRetries $2$

Score on last try: $1$ of $1$ pts$.$ See Details for more.

How much equity do you have in your home $($equity is value minus remaining debt$)$

$

Correct

UnattemptedQuestion $9$

Check $0/3$ ptsRetries $3$

Refinancing

Since interest rates have dropped, you consider refinancing your mortgage at a lower $6\%$ rate.

If you took out a new $30$ year mortgage at $6\%$ for your remaining loan balance, what would your new monthly payments be$?$

$

UnattemptedQuestion $10$

Check $0/2$ ptsRetries $3$

How much interest will you pay over the life of the new loan?

$

IncorrectQuestion $11$

Check $0/1$ ptRetries $2$

Score on last try: $0$ of $1$ pts$.$ See Details for more.

You can retry this question below

Analyzing the refinance

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.

How much will you save each month because of the lower monthly payment?

$

Incorrect

UnattemptedQuestion $12$

Check $0/1$ ptRetries $3$

How much total interest will you be paying $($consider the interest you paid over the first $10$ years of your original loan as well as interest on your refinanced loan$)$

$

UnattemptedQuestion $13$

Check $0/2$ ptsRetries $3$

Now the non$-$computational question: Does it make sense to refinance? $($there isn't a correct answer to this question. Just give your opinion and your reason$)$

$($Note: The computer can't auto$-$grade this part, so it will show a score of $0$ until I manually grade it$)$