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New monthly payments for the rest of mortgage term

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It has been exactly 6 years since Alan bought his house for $375,000. Six years ago, he paid $75,000 as a down payment and took out a 35-year mortgage for the remaining amount with monthly payments and a quoted APR of 5.5% (with semi-annual compounding). Today, Alan has received a promotion to a higher paying managerial position at his firm. He has decided to pay part of his mortgage in order to reduce his monthly payments. Alan has already made his payment for this month, but he will now make a lumpsum payment of $75,000. What will be his new monthly payments (starting next month) for the rest of the mortgage term, assuming the interest rate stays the same?

Reference no: EM132673477

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