How much interest will you pay over the remaining years

Assignment Help Financial Management

Reference no: EM131450281

Five years ago you took out a 30-year mortgage with a quoted interest rate of 6.5% per year compounded semi-annually for $200,000. You decide to make monthly payments.

a) How much interest have you paid over the first 5 years? Now you are able to refinance the mortgage today at a quoted rate of 4.25% per year compounded semi-annually.

b) If you keep your monthly payment the same as in a), how long will it take you to pay off your mortgage?

c) How much interest will you pay over the remaining years of your mortgage now?

d) Instead you decide to make bi-weekly payments (one payment every two weeks) that are exactly half of your monthly payment from part a). How long will it take you to pay off your mortgage?

e) How much interest will you pay over the remaining years of your mortgage now?

Reference no: EM131450281

Questions Cloud

No cash dividends during this period of time : Twenty-five years ago, you purchased 100 shares of XYZ, Inc. for $8 per share. XYZ paid out no cash dividends during this period of time,

What effect will this growth have on funds : Galehouse Gas Stations Inc. expects sales to increase from $1,540,000 to $1,740,000 next year. What effect will this growth have on funds?

What bid price should you submit : If your tax rate is 35% and you require a 13% return on your investment, what bid price should you submit?

The cash aows of a three-year risk-free bond : Write down the cash áows of a three-year risk-free bond that has face value of $1,000 and pays coupon C each year-end.

How much interest will you pay over the remaining years : How much interest will you pay over the remaining years of your mortgage now?

What are the required numbers of circuits in each group : If we require that the end-to-end GoS probability of loss for each call (internal and external) is no greater than 0.01 (1 in 100), what are the GoS probabilities of loss allowed for each of the two groups of circuits?

Write a research paper about storage area networks : CSCI 3150- Using Web and/or library resources, write a research paper about Storage Area Networks (SAN). The paper must be your own work and your own writing.

Describe a current it-related ethical issues : Describe a current IT-related ethical issue: Since this is a paper exercise, not a real-time situation, you may want to construct a brief scenario .

Describe the ppc campaign : You will be creating a Pay-per-Click (PPC) Plan of 4 pages. For this portion of the e-Business Plan.

User Account

All Pages