QUESTION 31 13 points Work through the following mortgage scenario with Four (4) parts: 1....
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QUESTION 31 13 points Work through the following mortgage scenario with Four (4) parts: 1. Borrower has a 30-year mortgage at 8% based on $600,000 What is the monthly payment principal and interest payment) of this mortgage? (4 points) 2. After 8 years, what is the remaining balance? (3 points) 3. At the end of the eighth year (based on remaining balance found in Number 2 above), the borrower has the abilty to refinance that remaining balance with a 20-yed mortgage with an interest rate of 4% if the balance in Number 2 above is refinanced with a 20-year mortgage with an interest rate of 4%, what would the new monthly payment principal and interest payment) the new loan? (3 points) Assuming that there is a prepayment penalty of $8,000 to pay off the original mortgage used in Number 1 (based on 30 years, 6%, $800,000) and $6,000 in costs to o he new loan, how many months would you need to hold the property with the new mortgage as described in Number 3 to offset the costs of the refinance? (3 points) Answer all four questions in the space provided or the toolbw.press ALT-10%) or ALTINF10 (Mac)
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