Question

You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $2.720 and you have made every payment on time. The original term of the mortgage was 30 years, and the mortgage is exactly four years and eight months old. You have just made your monthly payment. The mortgage interest rate is 6.012% (APR). How much do you owe on the mortgage today? The amount you owe today is $ . (Round to the nearest dollar)

Answer 1

Ans $ 424,082

		P =	Regular Payments
		PV =	Loan Amount
		r =	rate of interest
		n =	no of periods
		P =	r (PV)
			1 - (1 + r )-n
		2720 =	(6.012%/12)*PV
			1 - (1 / (1 + 6.012%/12)^360))
		2720 =	0.00501 * PV
			0.834551782
		PV =	2720 * 0.834551782067333 / 0.00501
		PV =	453089.99
	Beginning Balance	Interest	Principal	Ending Balance
1	$453,089.99	$2,269.98	$450.02	$452,639.97
2	$452,639.97	$2,267.73	$452.27	$452,187.70
3	$452,187.70	$2,265.46	$454.54	$451,733.16
4	$451,733.16	$2,263.18	$456.82	$451,276.34
5	$451,276.34	$2,260.89	$459.11	$450,817.24
6	$450,817.24	$2,258.59	$461.41	$450,355.83
7	$450,355.83	$2,256.28	$463.72	$449,892.11
8	$449,892.11	$2,253.96	$466.04	$449,426.07
9	$449,426.07	$2,251.62	$468.38	$448,957.70
10	$448,957.70	$2,249.28	$470.72	$448,486.97
11	$448,486.97	$2,246.92	$473.08	$448,013.89
12	$448,013.89	$2,244.55	$475.45	$447,538.44
Year #1 End
13	$447,538.44	$2,242.17	$477.83	$447,060.61
14	$447,060.61	$2,239.77	$480.23	$446,580.38
15	$446,580.38	$2,237.37	$482.63	$446,097.75
16	$446,097.75	$2,234.95	$485.05	$445,612.70
17	$445,612.70	$2,232.52	$487.48	$445,125.22
46	$430,438.00	$2,156.49	$563.51	$429,874.50
47	$429,874.50	$2,153.67	$566.33	$429,308.17
48	$429,308.17	$2,150.83	$569.17	$428,739.00
Year #4 End
49	$428,739.00	$2,147.98	$572.02	$428,166.99
50	$428,166.99	$2,145.12	$574.88	$427,592.10
51	$427,592.10	$2,142.24	$577.76	$427,014.34
52	$427,014.34	$2,139.34	$580.66	$426,433.68
53	$426,433.68	$2,136.43	$583.57	$425,850.11
54	$425,850.11	$2,133.51	$586.49	$425,263.62
55	$425,263.62	$2,130.57	$589.43	$424,674.19
56	$424,674.19	$2,127.62	$592.38	$424,081.81