Using excel! Hagrid buys a home for $230,000 and put $19000 down. He finances the rest at...

Using excel!

Hagrid buys a home for $230,000 and put $19000 down. He finances the rest at 6% for 30 years.

If he refinances after 8 years at 3.95% how much will he save assuming he pays the original amount the whole time?

How many years total does it take to pay off the loan?

Solutions

Expert Solution

LOAN AMOUT

211000.00

(230000-19000)

(FOR 30 YEARS ASSUMING MONTHLY EQUAL INSTALLMENT )

IF HE CHOOSE TO PAY @6% FOR 30 YEARS

THEN HE WILL PAY EMI OF $1265 PER MONTH

AND TOTAL AMOUNT WILL BE $ 455419

AND IF HE REFINANCE AFTER 8 YEARS THEN PAY AT SAME EMI @ 3.95%

THEN TOTAL AMOUNT PAID BY HIM WILL BE $ 374545

1. TOTAL SAVING

$80,874

2. TOTAL TIME TAKEN IN CASE OF REFINANCE

24 YEARS 8 MONTHS

Year	Principal	Interest	Total Payment	Balance	Loan Paid To Date
Year	(A)	(B)	(A + B)	Balance	Loan Paid To Date
2026	? 8,014	? 7,171	? 15,186	? 1,77,186	4.33%

2027	? 8,337	? 6,849	? 15,186	? 1,68,849	8.83%

2028	? 8,672	? 6,514	? 15,186	? 1,60,177	13.51%

2029	? 9,021	? 6,165	? 15,186	? 1,51,156	18.38%

2030	? 9,384	? 5,802	? 15,186	? 1,41,772	23.45%

2031	? 9,761	? 5,425	? 15,186	? 1,32,010	28.72%

2032	? 10,154	? 5,032	? 15,186	? 1,21,857	34.20%

2033	? 10,562	? 4,623	? 15,186	? 1,11,294	39.91%

2034	? 10,987	? 4,199	? 15,186	? 1,00,307	45.84%

2035	? 11,429	? 3,757	? 15,186	? 88,878	52.01%

2036	? 11,889	? 3,297	? 15,186	? 76,989	58.43%

2037	? 12,367	? 2,819	? 15,186	? 64,622	65.11%

2038	? 12,864	? 2,321	? 15,186	? 51,758	72.05%

2039	? 13,382	? 1,804	? 15,186	? 38,376	79.28%

2040	? 13,920	? 1,266	? 15,186	? 24,456	86.80%

2041	? 14,480	? 706	? 15,186	? 9,976	94.61%

2042	? 9,976	? 148	? 10,124	? 0	100.00%

Year	Principal	Interest	Total Payment	Balance	Loan Paid To Date
Year	(A)	(B)	(A + B)	Balance	Loan Paid To Date
2018	? 2,591	? 12,590	? 15,181	? 2,08,409	1.23%

2019	? 2,751	? 12,430	? 15,181	? 2,05,658	2.53%

2020	? 2,921	? 12,260	? 15,181	? 2,02,737	3.92%

2021	? 3,101	? 12,080	? 15,181	? 1,99,637	5.39%

2022	? 3,292	? 11,889	? 15,181	? 1,96,345	6.95%

2023	? 3,495	? 11,686	? 15,181	? 1,92,850	8.60%

2024	? 3,711	? 11,470	? 15,181	? 1,89,139	10.36%

2025	? 3,939	? 11,241	? 15,181	? 1,85,200	12.23%

2026	? 4,182	? 10,998	? 15,181	? 1,81,017	14.21%

2027	? 4,440	? 10,740	? 15,181	? 1,76,577	16.31%

2028	? 4,714	? 10,466	? 15,181	? 1,71,863	18.55%

2029	? 5,005	? 10,176	? 15,181	? 1,66,858	20.92%

2030	? 5,314	? 9,867	? 15,181	? 1,61,544	23.44%

2031	? 5,641	? 9,539	? 15,181	? 1,55,902	26.11%

2032	? 5,989	? 9,191	? 15,181	? 1,49,913	28.95%

2033	? 6,359	? 8,822	? 15,181	? 1,43,554	31.96%

2034	? 6,751	? 8,430	? 15,181	? 1,36,803	35.16%

2035	? 7,167	? 8,013	? 15,181	? 1,29,636	38.56%

2036	? 7,609	? 7,571	? 15,181	? 1,22,026	42.17%

2037	? 8,079	? 7,102	? 15,181	? 1,13,948	46.00%

2038	? 8,577	? 6,604	? 15,181	? 1,05,370	50.06%

2039	? 9,106	? 6,075	? 15,181	? 96,264	54.38%

2040	? 9,668	? 5,513	? 15,181	? 86,597	58.96%

2041	? 10,264	? 4,917	? 15,181	? 76,333	63.82%

2042	? 10,897	? 4,284	? 15,181	? 65,436	68.99%

2043	? 11,569	? 3,611	? 15,181	? 53,866	74.47%

2044	? 12,283	? 2,898	? 15,181	? 41,584	80.29%

2045	? 13,040	? 2,140	? 15,181	? 28,543	86.47%

2046	? 13,845	? 1,336	? 15,181	? 14,699	93.03%

2047	? 14,699	? 482	? 15,181	? 0	100.00%

ekkarill92 answered 1 year ago

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