Question

You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is

$ 3 comma 093$3,093

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

6.404 %6.404%

​(APR). How much do you owe on the mortgage​ today?

The amount you owe today is $?

Answer 1

First calculate original loan principal value

Using financial calculator BA II Plus - Input details:	#
I/Y = Rate or yield = 6404/12 =	0.533667
PMT = Payment =	-$3,093.00
N = Number of years remaining x frequency = 30 x 12 =	360.00
FV = Future Value =	$0.00
CPT > PV = Principal loan =	$494,272.7648

Finding outstanding balance at end of the particular time
P = Principal Loan =	$494,272.76
R = Rate or APR =	6.404%
n = Total number of payments done =	56
PMT =	$3,093.00
FV = Outstanding Balance = (P*(1+R/12)^n)-(PMT*((1+R/12)^n-1)/(R/12))
FV = Amount you owe = ($494,272.7648*(1+6.404%/12)^56)-(3093*((1+6.404%/12)^56-1)/(6.404%/12) =	$         464,652.25