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Monthly payment be with the new mortgage

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Reference no: EM133076557

Your amortization table should be set up so that if the assumptions change your table updates appropriately. The assumption cells should be clearly identified (e.g. yellow). Grades will not be posted until everyone in your group has completed the peer evaluation or the due date has passed whichever is sooner.

Scenario: 10 years ago, Janice got a $200,000, 30-year mortgage with an annual interest rate of 6% and monthly payments.

1) What is her monthly payment?

2) How much does she owe today (after 120 payments)?

Janice is planning to move in 2 years.

3) How much will she owe in 2 years (after 144 payments)?

Option 1: Janice is considering making an extra payment of $100 each month for the next 2 years.

4) How much will she owe in 2 years (after 144 payments) if she makes an extra $100 payment every month starting with her next payment (payment 121)?

Option 2: Janice is considering refinancing the remaining balance on her loan (your answer to 2) along with $1,500 in closing costs into a new 20-year mortgage with an annual interest rate of 3% and monthly payments.

5) What would her monthly payment be with the new mortgage?

6) How much will she owe in 2 years on her new mortgage?

7) Which option (1 or 2) do you think would be best? Explain.

Reference no: EM133076557

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