Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. tamara has a mortgage for $361,215.00. the term of

Tamara has a mortgage for $361,215.00. The term of the mortgage is 5 years, and...

90.2K

Verified Solution

Question

Finance

image
Tamara has a mortgage for $361,215.00. The term of the mortgage is 5 years, and the amortization period is 25 years. Tamara will make monthly payments and the mortgage rate is 1(2) = 2.500%. After 4 years, the interest rate drops to 1.250% compounded semi-annually, and she decides to refinance her loan. In order to refinance, she has to pay a penalty of 3 months interest (based on the original interest rate), which is added to the outstanding balance on the new mortgage. a) What is the outstanding balance at the time Tamara decides to refinance (not including the penalty)? $ b) What is the amount of the penalty? $ The new mortgage has exactly the same terms (term, amortization period, etc.) as the original mortgage except for the amount and the interest rate. What are the the new monthly payments? $ Certainty : C=1 (Unsure: 6796) OC=3. (Quite sure: >80%)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What is working memory capacity. Explain also how can you use the working memory principles explained...

Psychology
Q

A chimpanzee a human a gibbon and old world monkeys all share O a 2...

Biology
Q

If ? = 3?/4cos(?) =sin(?) =

Basic Math
Q

For problems 5-7, solve each triangle by finding the measure of all the unknown angles...

Basic Math
Q

The number of observations greater than 16 52567 is closest to 0384 0128 0896 01152

Statistics
Q

preparation products on the market Study Focus and Prepara A researcher in the Education department...

Statistics
Q

se the alternative curvature formula K r t 8 sint 8 cos t 0 vxa...

Calculus
Q

If f x StartRoot x minus 3 EndRoot which inequality can be used to find...

Calculus
Q

Exercise 22-8(Static) Departmental income statement and contribution to overhead LO P3 Exercise...

Accounting
Q

Brief Exercise 8-5 Effect of treasury stock on the horizontal statements model The following information...

Accounting
Q

Imperial Jewelers is considering a special order for 17 handcrafted gold bracelets to be given...

Accounting
Q

1. Suppose that you consider different dealer options for a car for $19,900. Calculate monthly...

Finance