New mortgage has quoted interest rate

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Steve and Laurie bought a house in Edmonton exactly 5 years ago. They took out a mortgage for $400,000 at that time. The mortgage had a 25-year amortization period, monthly mortgage payments, and a quoted interest rate of 8% (APR, semi-annually compounded). Steve and Laurie recently decided to buy a new house, also in Edmonton. Today they will receive payment from the buyer of their old home and make a down payment on the new house. If the old house sold for $600,000, the new one is priced at $800,000, and the down payment on the new house equals the net proceeds from the sale of their old house, how big is their new mortgage (assuming monthly mortgage payments)? (Net proceeds = Selling price of old house less Outstanding Principal Balance on the old mortgage). If the new mortgage has a quoted interest rate of 6% and a 20-year amortization period, how big are Steve and Laurie’s new monthly payments?

Reference no: EM13846814

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New mortgage has quoted interest rate : Steve and Laurie bought a house in Edmonton exactly 5 years ago. They took out a mortgage for $400,000 at that time. The mortgage had a 25-year amortization period, monthly mortgage payments, and a quoted interest rate of 8% (APR, semi-annually compo..

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