How much less will diane monthly mortgage payment

Reference no: EM13186372

Five years ago, Diane secured a bank loan of $300,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 9%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to 7%/year compounded monthly, Diane is thinking of refinancing her property. (Round your answers to the nearest cent.)

(a) What is Diane's current monthly mortgage payment? What is Diane's current outstanding principal?

(b) If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 7%/year compounded monthly, what will be her monthly mortgage payment?

Reference no: EM13186372

Questions Cloud

How much work w is done in pulling half the rope to the top : A heavy rope, 30 ft long, weighs 0.6 lb/ft and hangs over the edge of a building 70 ft high. How much work W is done in pulling half the rope to the top of the building?

Calculate real gdp for 2007 : The Republic of Republic produces two goods/services, fish (F) and chips (C). In 2006, the 200 units of F produced sold for $3 per unit and the 500 units of C produced sold for $1 per unit. In 2007, the 300 units of F produced sold for $4 per unit..

What is the financial charge and amount financed : the morrison family bought a car at $24000 which was financed at $600 per month for 40 months. The down payment was $5000. (a)? what was the installment price,... (b)? what is the financial charge and amount financed.

Compute the oxygen content of the plasma : Calculate the oxygen content of the plasma in mM! 1 ml plasma dissolves 24 uL oxygen at 38 degrees C if the partial pressure is 103 kPa.

How much less will diane monthly mortgage payment : What is Diane's current monthly mortgage payment? What is Diane's current outstanding principal?

Find the associated exponential model for the value : In 2007, a bank was offering 4.39% interest on its online Orange Savings Account, with interest reinvested quarterly. Find the associated exponential model for the value of a $4,000 deposit after t years.

Explain how many grams of ammonium sulfate : How many grams of ammonium sulfate should be dissolved in 160 ml of water for the preparation

Identify the virus software running on your computer : Explain the origin and effects of at least 3 different types of viruses/malicious programs as well as how your computer can become vulnerable to these threats.

How to use the zero-factor property : Explain in your own words how to use the zero-factor property when solving a quadratic equation. Post a problem for classmates to solve.

User Account

All Pages