How much will she gain or lose

Assignment Help Finance Basics
Reference no: EM132535086

Jingfei bought a house 5 years ago for $250,000. Her down payment on the house was the minimum required 10% at that time she financed the remainder with a 15-year fixed rate mortgage. The annual interest rate was 8% and she was required to make monthly payments, and she has just made her 60th payment. A new bank has offered to refinance the remaining balance on Jingfei's loan and she will have to pay $2,170 per month for the next 10 years, but the total fees she will have to pay today to get the new loan is $1,200. Should she take the new offer? How much will she gain or lose in today's dollars if she does? Annual interest rates are still 8%.

Reference no: EM132535086

Questions Cloud

Construct all of required journal entries to record sales : Construct all of the required journal entries to record the sales and purchase transactions above including sales and purchase returns.
How much interest would the firm have to pay : What is the present value of a perpetuity that pays RM1,000 per year, beginning one year from now, if the appropriate interest rate is 5%?
Would wider adi management agree : You are a securities portfolio manager for a large bank. The economy has been contracting and growth has slowed markedly,
What is the maximum capital cost allowance : What is the maximum capital cost allowance (CCA) that Sleepy can claim for the current year? Sleepy Pillow Co. (Sleepy) commenced business on January 1
How much will she gain or lose : How much will she gain or lose in today's dollars if she does? Annual interest rates are still 8%.
Find the discounted payback and convert : Find the discounted payback and convert this into a percentage.
Prepare the bank reconciliation at may : Prepare the bank reconciliation at May 31, 2015. The bank reported the collection of a note receivable for Romney of S7,300 including $500 interest.
Risky security than by buying a risk-free asset : Assume that you have invested half of your wealth in a risk-free asset and half in a risky portfolio P. Is it theoretically possible to lower your portfolio
Risky security than by buying a risk-free asset : Assume that you have invested half of your wealth in a risk-free asset and half in a risky portfolio P. Is it theoretically possible to lower your portfolio

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd