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Consider a 30-year, $155,000 mortgage with a rate of 6.05 percent. Ten years into the mortgage,...

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Finance

Consider a 30-year, $155,000 mortgage with a rate of 6.05percent. Ten years into the mortgage, rates have fallen to 5percent. What would be the monthly saving to a homeowner fromrefinancing the outstanding mortgage balance at the lowerrate?  (Do not round intermediate calculations.Round your answer to 2 decimal places.)


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4.0 Ratings (737 Votes)
EMI as per old rates have to be calculated first EMI P R 1 RN 1 RN 1 R 605 12 05041 N 30 12 360 155000 60512 160512360 1 60512360 1 93429 Now we need to calculate the balance outstanding after 10 years which could be seen in the amortisation schedule below Month Beginning amt EMI Interest Principal End Amount 1 15500000    See Answer
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