Customer Service Chat
Get quote & make Payment
Finance Project , Finance Basics
Five years ago, you bought a house for $151,000, with a down payment of $30,000, which meant you took out a loan for $121,000. Your interest rate was 5.75% fixed. You would like to pay more on your loan. You check your bank statement and find the following information:
Escrow payment $211.13
Principle and Interest payment $706.12
Total Payment $917.25
Current Loan Balance $112,242.47
1.Explain how much additional money you would need to add to your monthly payment to pay off your loan in 20 years instead of 25.
2.Explain whether or not it would be reasonable to do this is if you currently meet your monthly expenses with less than $100 left over.
3.It might be possible to pay the current balance off in 20 years if you refinanced the loan at a lower interest rate. The interest rate that you qualify for will depend, in part, on your credit rating. Identify the highest interest rate you could refinance at in order to do this and determine the interest rate that would require a monthly total payment that is less than your current total payment. Also, refinancing costs you $2000 up-front in closing costs.
4.Explain whether it is more or less reasonable to consider refinancing your loan. In order to answer this, you need to look at different interest rates. Know that if you refinance, your minimum monthly payments will be based on a 30-year loan (though you still want to be done in 20 years). Also, refinancing costs you a couple of thousand dollars up front in closing costs.
Posted Date: 11/18/2012 2:43:56 PM | Location : United States
Ask an Expert
Finance Project , Assignment Help, Ask Question on Finance Project , Get Answer, Expert's Help, Finance Project Discussions
Write discussion on Finance Project
Your posts are moderated
Write your message here..
Calculate the ex-right stock price, DIY Inc. plans to raise $200,000 with a...
DIY Inc. plans to raise $200,000 with a right offering. The current stock price is $100 and there are 80,000 shares outstanding. a. If DIY sets the subscription price to be $80
#title., evaluate the source of finance for a business project
evaluate the source of finance for a business project
#accounting., why prospective buyers need to see accounting information
why prospective buyers need to see accounting information
Corporate finance, I need report on Corporate Finance. Do you provide help ...
I need report on Corporate Finance. Do you provide help in topic Corporate Finance? I need expert's assistance to solve my college assignment. Please suggest if it works for me.
Liquidity preference theory, Liquidity Preference Theory This theory s...
Liquidity Preference Theory This theory states that short term bonds are extremely favorable than long term bonds for two (2) purposes. 1. Investors usually prefer short te
Circle the new equilibrium if there is an increase in price, a. In the acc...
a. In the accompanying diagram (which represents the market for chocolate candy bars), the initial equilibrium is at the intersection of S1 and D1. Circle the new equilibrium if t
Leverage or gearing ratios, Leverage or Gearing Ratios Leverage or gea...
Leverage or Gearing Ratios Leverage or gearing ratios are as follow: a) Debt ratio = Total debts/Total assets Whereas total debt = fixed charge capital + liabilities.
investors are risk neutral, At t = 0, a 3-year, 7% coupon corporate bond w...
At t = 0, a 3-year, 7% coupon corporate bond with face value $1,000 is trading at a credit spread of 15%. The risk free rate is constant and equal to 4% for all maturities. The rec
THE CASE OF THE MISSING BONDS RATING, Three of these companies have bonds t...
Three of these companies have bonds that carry investment - grade ratings. The other 3 companies carry junk - bond ratings. Judging by the information in the table, which 3 compani
Calculate the return on equity, Maghrabi Enclosure follows a moderate curre...
Maghrabi Enclosure follows a moderate current asset investment policy, but it is considering whether to shift to a different strategy. The firm's annual sales are $500,000; its fi
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.