John has a mortgage for $250,200.00. The term of the mortgage is 4 years, and...
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John has a mortgage for $250,200.00. The term of the mortgage is 4 years, and the amortization period is 25 years. John will make bi-weekly payments and the mortgage rate is r(12) = 7.50%.
a) When the mortgage term expires John takes out a new mortgage for the outstanding balance still owing. The amortization period for the new mortgage is 20 years, and the term for the new mortgage is 4 years. The interest rate remains the same. What are his new bi-weekly payments?
b) John refinances her mortgage after 3 years (without penalty). The new mortgage has amortization period 22 years, and term 2 years. The amount is the outstanding balance still owing on the original mortgage, and the new interest rate is r(12) = 6.7500%. What are the the new bi-weekly payments?
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