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What the plant would now owe on mortgage

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Reference no: EM133117048

The Plant's mortgage is renewing in 12 months. What would be the impact of the each of these three scenarios on what the Plant's would now owe on their mortgage? Show your work and provide the correct answer for each scenario.

  1. The Plant's agree that they could change their payment frequency to accelerated weekly. How would this impact their cash flow and amortization? How much would they potentially save them in interest?  (You do not have to calculate EFF weekly rate)
  2. The Plant's could "blend and extend" their existing mortgage with a new 5-year mortgage rate of 4.79%. What would their new rate be?
  3. The Plant's have been offered a 5 year 2.79% rate for their mortgage if they refinance. Should they go ahead with the refinance? Include a break-even analysis that will help the Plant's make the decision.

Reference no: EM133117048

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