Question

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

$3,120

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

6.750%

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

Answer 1

- Current Monthly Payment = $3120

First, we will calculate Loan amount:-

Where, P = Loan Amount

r = Periodic Interest rate = 6.750%/12= 0.5625%

n= no of periods = 30 years*12 = 360

P = $481,037.49

So, Loan amount = $481,037.49

Now, Calculating the Outstanding Loan balance today:-

Where, P = Loan Amount = $481,037.49

r = Periodic Interest rate = 6.750%/12= 0.5625%

n= no of periods = 30 years*12 = 360

m = no of loan payments already made = 4 years & 8 months or 4.66 years*12 = 56 months

Outstanding Balance = $453,864.61

So, the amount owe on the mortgage​ today is $453,864.61