You purchase a house that costs 800000TL. For this you take outa loan from a bank for 25 years at 8.8% interest. You will pay yourdebt by making equal monthly payments. After 15 years the interestrates have dropped. Another bank offers you 7.5% interest. Youdecide to take out a second loan for the next 10 years, which willbe paid monthly to this new bank and you pay off your total debt tothe first bank.
How much were your monthly payments for the first 15 years?
How much interest is paid between years 12 and 15?
How much are your new monthly payments for the remaining 10years?
How much money is saved in 25 years by doing thisrefinancing?
