Question

College question: Suppose you have $165000 30 year mortgage at 6.12% interest compounded monthly. For 5 years, you only pay the monthly payments required. at the end of the 5th year, you have the option to refinance your home with a new 30 eyar mortgage that has an interest rate of 5.15% compounded monthly. Answer the following: A. If you refinance current mortagage with new mortgage, find new monthly payment. (for this question i got $9077.1267, but i want to make sure if thats correct) B. If you were to refinance the current mortgage with the new mortgage, how much money would you save, or l

Answer 1

lose in interest with this new mortgage*

Answer 2

You would definitely save money! How much exactly? Calculate the new monthly payment and subtract it from the original one. Hope this helps.

Answer 3

i need to know if a is correct

Answer 4

Do you know any website where I can find a mortgage calculator spreadsheet?

Answer 5

https://www.google.com/advisor/mortgages?bsp&s=1&kw=mortgage%20calculator%20spreadsheet&cat=2&schema=refinanceAmb&c=mi_fcl&group=calculator&q=mortgage%20calculator%20spreadsheet&b=E

Answer 6

or you can use a graphing calculator and use the tvm solver

Answer 7

nvm that isnt the right site

Answer 8

Wait. I have something here

Answer 9

Did the monthly payment for original mortgage come out to be: $ 993.87

Answer 10

*per month that is.

Answer 11

hmm i got 9077.12?

Answer 12

My calculations show it should be $ 9938.67

Answer 13

that most likely would be correct because i was unsure. did you use the tvm solver?

Answer 14

Use this website it explains the stuff well as also has a spread sheet with amortization table.

http://www.yorku.ca/amarshal/mortgage.htm

Answer 15

okay ill give it a look thanks

Answer 16

I dont know why my post is appearing thrice! :)

Answer 17

Good luck; that page has all the info you need and also a ready made spread sheet; I guess that should do it for you.