Question

You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $2,356 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 6.375% ​(APR). How much do you owe on the mortgage​ today? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.)

The amount you owe today is ​$_______. (Round to the nearest​ dollar.)

Answer 1

- Current Monthly Payment = $2356

First, we will calculate Loan amount:-

Where, P = Loan Amount

r = Periodic Interest rate = 6.375%/12= 0.53125%

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

P = $377,642.84

So, Loan amount = $377,642.84

Now, Calculating the Outstanding Loan balance today:-

Where, P = Loan Amount = $377,642.84

r = Periodic Interest rate = 6.375%/12= 0.53125%

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 = $354,900

So, the amount owe on the mortgage​ today is $354,900

If you need any clarification, you can ask in comments.    

If you like my answer, then please up-vote as it will be motivating