Business, 10.03.2020 01:38 venancialee8805

Refinancing a Mortgage. Kevin Tutumbo of Terre Haute, Indiana, has owned his home for 15 years and expects to live in it for at least five more. He originally borrowed $135,000 at 6 percent for 30 years to buy the home. He still owes $96,000 on the loan. Interest rates have since fallen to 4.5 percent, and Kevin is considering refinancing the loan for 15 years. He would have to pay 2 points on the new loan with no prepayment penalty on the current loan.(a) What is Kevin's current monthly payment?N 30 x 12 = 360I/Y 6 / 12 = 0.5PV 135,000PMT CPTFV 0(b) Calculate the monthly payment on the new loan. N 15 x 12 = 180I/Y 4.5 / 12 = 0.375PV 96,000PMT CPTFV 0

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Refinancing a Mortgage. Kevin Tutumbo of Terre Haute, Indiana, has owned his home for 15 years and e...