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You wish to buy a new house and can afford to put $30K of your...

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Finance

You wish to buy a new house and can afford to put $30K of your own money for a deposit.

Everything progresses as planned, you make the new increased payments of $1,500 for the next 5 years how much is owed at the end of this period (15 years left on the original 30-year mortgage)?

You have 15 years left, and owe $134,056. YOU are still required to make the original contractual payments of $1,136.61. You have shopped around at various banks, and although 30-year fixed mortgages are still priced at an APR of 3.6% approximately (the rate you are still paying), 15-year fixed mortgages are offered at 2.8% APR. If you refinance your mortgage, with a new 15-year mortgage, at an APR of 2.8%, and keep your payments at $1,136.61, when will you pay off the mortgage? (Ignore points and other refinancing costs.)

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