Amortized payment, Financial Accounting

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Amortized Payment

You purchase a house that costs $800,000 with an 8%, 30-year mortgage. You make a 20% down payment to avoid PMI insurance.

(i) What is your monthly payment?

(ii) Amortize the first and second payments.

(iii) Suppose after 7 years you refinance at 7% the remaining balance at a cost of $15,000, for 30 years. What is your new monthly payment? Assume refinancing cost is rolled back into the mortgage.


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