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Paying the balance of the original loan

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Mr. Smith bought a $ 310000 house 6 years ago. The house is now worth $ 620000 . Originally, the house was financed by paying 30% down with the rest financed through a 20-year mortgage at 5% interest. After making 72 monthly house payments,Mr. Smith is now in need of cash, and would like to refinance the house. The finance company is willing to loan 85% of the current value of the house amortized over 15 years at 3% interest. 

How much cash will the owner receive after paying the balance of the original loan? 

Amount of cash obtained = $

If he uses all of the available cash for something other than investing in his home, by how much will his monthly payment increase? 

Increase in monthly payment = $

Reference no: EM131721506

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