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..
Real Estate - Mortgage Prequalification, Bob and Jackie came to your bank s...
Bob and Jackie came to your bank seeking an FHA mortgage. They want to know how large a mortgage they would be qualified for and what the terms would be. Bob is a pastry chef (
Calculate the volume of sales to earn profit, From the following informatio...
From the following information related to XYZ Ltd.; you are required to find out (a) contribution (b) Break-even point in units (c) Margin of safety, (d) Profit Tota
FASB, FASB Assignment
Risk-return trade-off, Risk-Return Trade-Off Most financial decisions ...
Risk-Return Trade-Off Most financial decisions comprise alternative courses of action. The choices have different returns and risk. As like example, must we buy a replacement
Asset based valuation, Asset Based Valuation This method acquires int...
Asset Based Valuation This method acquires into account the entire business along with reference to its assets and then divides the resultant value via the number of shares i
Non-linear Break Even Analysis, International Data Systems information on r...
International Data Systems information on revenue and costs is only relevant up to a sales volume of 100,000 units. After 100,000 units, the market becomes saturated and the price
Draw a budget constraint , The price of bread is $0.50 per pound, and the p...
The price of bread is $0.50 per pound, and the price of butter is $0.25 per ounce. Channing spends all of her income, buying 12 pounds of bread, 7 ounces of butter, and nothing els
Evaluate the companys financing strategy, For any company that is quoted on...
For any company that is quoted on the London Stock Market, you are required to write a report to existing shareholders on any TWO of the following issues. Each answer carries equal
Cost of retaining finance, Cost of Retaining Finance This will contain...
Cost of Retaining Finance This will contains dividends for share capital and interest for debt finance or can say tax deducted or like effective cost of debt. Though, when co
Determine usefulness of information in financial statements, Since 1968, Dr...
Since 1968, Dracula Limited has traded in Doncaster, South Yorkshire as a manufacturer of fancy-dress and theatrical costumes. It produces a wide range of general theatrical costum
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.