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#1 Using a spreadsheet application, create an amortization schedule for a 30 year, fixed rate (4.58%) $200k loan. Answer the following: what is the monthly payment? how much total interest will you pay? Print out enough of your spreadsheet to defend your work and answers.

Assume that you took the loan in #1 and paid your monthly payments for 5 years. Your friend tells you about a great new rate to refinance your home. You can refinance the outstanding principal by taking out a new 30 year, fixed rate (3.28%) loan. What is your new monthly payment? how much TOTAL interest will you pay for your original $200k loan? What are the pros/ cons of refinancing? Print out enough of your spreadsheet to defend your work and answers.

Assume that you took the loan in #1. Instead of making the minimum payment, you decide that you can swing an extra $75 each month towards the payments. Answer the following: what are you paying each month toward the loan? how much total interest will you pay? how long will it take you to pay off your loan? What are the pros/ cons of making an extra payment? Print out enough of your spreadsheet to defend your work and answers.

** Please use Excel! Someone tried to Solve this, but I'm not sure it it is fully answered. Please go over the answer to the question below, and make corrections as needed. Thanks **

Answer the following: 1) what is the monthly payment? - $ 1022.90 2) how much total interest will you pay - $ 168243.854 3) You can refinance the outstanding principal by taking out a new 30 year, fixed-rate (3.28%) loan. What is your new monthly payment? - Ans $ 797.42 4) how much TOTAL interest will you pay for your original $200k loan? - $ 44606.44 Refinancing Pro Cons Low Your Monthly payment Your 30 Years Will reset and you will pay more in Total Interest Reduce overall Interest payments Increase the duration and will not save in long Run Predictability Stability and Cost Saving IF rate Drop need to Look another refinancing option Saving in Interest Monthly payment will be higher Availability of Cash for Other Needs Losing more money in the long run : assume that you took the loan in #1. Instead of making the minimum payment, you decide that you can swing an extra $75 each month towards the payments. Answer the following: what are you paying each month toward the loan? Ans - Each Month payment - $ 1097.90 : how much total interest will you pay? Ans $ 142483.08 : how long will it take you to pay off your loan - Ans 312 EMIS. That is 26 years Pros: Less interest translates to more money saved Improved credit score if you're free of debt Free money to use for whatever you please - reinvesting, splurging, etc Opportunity to get a new loan which might offer a better rate Ongoing fees can be avoided Cons: Interest on s loans is deductible in Income tax and you will lose this deduction You might lose a significant amount through prepayment charges Your Saving will be lesser and you will be less cash in hand Loan Amount $ 200,000.00 Scheduled Payment $ Annual Interest Rate 4.58 % Scheduled Number of Payments 1,022.90 360 360 Loan Period in Years 30 Actual Number of Payments Number of Payments Per Year Total Early Payments | $ Start Date of Loan 01/01/2019 Total Interest $ 168,243.85 Loan Amount 182,535.79 Scheduled Payment $ 797.42 Annual Interest Rate 3.28 % Scheduled Number of Payments 360 Loan Period in Years 30 Actual Number of Payments 360 Number of Payments Per Year 12 Total Early Payments 5 Start Date of Loan 01/01/2019 Total Interest | $ 104,533.92 Optional Extra Payments $ Loan Amount $ 200,000.00 Scheduled Payment $ 1,022.90 Annual Interest Rate 4.58 % Scheduled Number of Payments 360 Loan Period in Years 30 Actual Number of Payments 312 Number of Payments Per Year 12 Total Early Payments $ 23,400.00 Start Date of Loan 01/01/2019 Total Interest $ 142,483.08 Optional Extra Payments $ 75.00

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