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

First, we will calculate the Loan amount from the following information:-

Where, P = Loan amount

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

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

EMI = monthly payment = $ 2,356

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 = 30years*12 = 360 months

m = no of period lapsed = 4 years & 8 months = 56 months

Outstanding balance = $ 354,900

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

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