Reference no: EM13747010
Five years ago, you bought a house for $151,000, with a down payment of $30,000, which meant you took out a loan for $121,000. Your interest rate was 5.75% fixed. You would like to pay more on your loan. You check your bank statement and find the following information:
Escrow payment =$211.13
Principle and Interest payment =$706.12
Total Payment =917.12
Current Loan Balance =$112,242.47
Write a 1-2 page paper in which you:
1. Explain how much additional money you would need to add to your monthly payment to pay off your loan in 20 years instead of 25.
2. Explain whether or not it would be reasonable to do this is if you currently meet your monthly expenses with less than $100 left over.
3. It might be possible to pay the current balance off in 20 years if you refinanced the loan at a lower interest rate. The interest rate that you qualify for will depend, in part, on your credit rating. Identify the highest interest rate you could refinance at in order to do this and determine the interest rate that would require a monthly total payment that is less than your current total payment. Also, refinancing costs you $2000 up-front in closing costs.
4. Explain whether it is more or less reasonable to consider refinancing your loan. In order to answer this, you need to look at different interest rates. Know that if you refinance, your minimum monthly payments will be based on a 30-year loan (though you still want to be done in 20 years). Also, refinancing costs you a couple of thousand dollars up front in closing costs.
Evaluate whether the proposed solution is ethical
: Donald Lennon is the president, founder, and majority owner of Wichita Medical Corporation, an emerging medical technology products company. Wichita is in dire need of additional capital to keep operating and to bring several promising products to fi..
|
Discuss the financial collapse of greece
: Discuss the financial collapse of Greece and its impact on other global markets
|
Summary of the reason for and nature of the contract
: The U.S. government employs a large number of contractors throughout many different departments. Unfortunately, not all contractors are scrupulous when seeking reimbursement for costs incurred during their contract period. Your reading covered four e..
|
How much was comprehensive income for the year
: Equity increased by $800,000 during the year including net income of $600,000 and other comprehensive loss of ($150,000). The company had no stock transactions during the years (issues or repurchases). How much was comprehensive income for the year?
|
Explain how much additional money you would need
: Explain how much additional money you would need to add to your monthly payment to pay off your loan in 20 years instead of 25
|
Increase in cash and cash equivalents
: As of December 31, 2010 total assets were $8,000, total liabilities were $3,500 and contributed capital was $1,500. The only other component of equity as of 12/31/10 was retained earnings.
|
Members of the national accounting association
: Members of the National Accounting Association, a not-for-profit organization, are charged annual dues of $150. Of this amount, $50 is restricted, per association policy, to covering the cost of the association’s journal, which every member receives...
|
Packaging a gene from an infectious agent
: A carrier vaccine involves packaging a gene from an infectious agent into a(n):
|
How russian becoming a legitimate european power
: Discuss how Russian went from being a vassal of the Mongols to becoming a legitimate European power in the 18th century.
|