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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
(A) (B) (A + B)
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
(A) (B) (A + B)
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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