What is emily current outstanding principal

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Question: HOME REFINANCING Four years ago, Emily secured a bank loan of $200,000 to help finance the purchase of an apartment in Boston. The term of the mortgage is 30 yr, and the interest rate is 9.5%/year compounded monthly. Because the interest rate for a conventional 30-yr home mortgage has now dropped to 6.75%/year compounded monthly, Emily is thinking of refinancing her property.

a. What is Emily's current monthly mortgage payment?

b. What is Emily's current outstanding principal?

c. If Emily decides to refinance her property by securing a 30-yr home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 6.75%/year compounded monthly, what will be her monthly mortgage payment?

d. How much less would Emily's monthly mortgage payment be if she refinances?

Reference no: EM131556674

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