Question
In: Accounting
1. Mortgage Analysis: When giving housing loans, financial institutions check, whether applicants qualify for the loan....
1. Mortgage Analysis:
When giving housing loans, financial institutions check, whether applicants qualify for the loan. For example, your down payment should exceed a certain percentage of the property value and your monthly payments (mortgage, property taxes etc.) should be less than a certain percentage of household's gross (pre-tax) monthly income.
Using the following parameters as variable inputs, please develop a model, which addresses the questions at the bottom
Inputs:
|
Household annual pre-tax income |
$ 197,000 |
|
Household liquid assets available for down payment |
$ 210,000 |
|
House price: |
$899,000 |
|
Real estate (property) tax: |
1.2% |
|
Loan characteristics |
|
|
Maturity: |
30 years |
|
APR: |
4.15% |
|
Payment frequency: |
monthly |
|
Minimum down payment requirement: |
20% |
|
All house-related payments (mortgage, property taxes etc.) as a percentage of gross (pre-tax) income should not exceed |
28% |
Questions:
-Create loan amortization schedule (double check your calculations by using alternative methods to calculate payments).
-Should this household receive the loan? What is the maximum mortgage loan that can be given to this household?
-Now assume that you have purchased the house exactly 5 years ago and you get an offer to refinance into a new 30 year mortgage with 4.00% APR. The fixed cost of refinancing is a one-time fee of $10,000.
-Is it to your benefit to refinance?
-What factors influence your decision? (Make any additional assumptions you deem necessary.)
Solutions
Expert Solution
| 1 | 899000 | ||||
| APR | 4.15% | rate r | |||
| Maturity in months (30*12) | 360 | n | |||
| Downpayment (B) | 179800 | ||||
| Annual income | 197000 | ||||
| Real Estate Tax @ 1.2% | 10788 | ||||
| Balance income available | 186212 | ||||
| Loan (A-B) | 719200 | Principal P | |||
| Monthly payment=P r (1+r)^n divided by (1+r)^n-1 | |||||
| Monthly Payment for 30 years | -$3,496.06 | ||||
| Alternative method of checking - Balance payable at the end of 360 months should be zero | |||||
| Month | Principal | Interest | payment | Balance | |
| 1 | 719200 | 2487.233333 | $3,496.06 | $7,18,191.18 | |
| 2 | $7,18,191 | 2483.744491 | $3,496.06 | $7,17,178.87 | |
| 3 | $7,17,179 | 2480.243584 | $3,496.06 | $7,16,163.06 | |
| 4 | $7,16,163 | 2476.730569 | $3,496.06 | $7,15,143.73 | |
| 5 | $7,15,144 | 2473.205405 | $3,496.06 | $7,14,120.88 | |
| 6 | $7,14,121 | 2469.66805 | $3,496.06 | $7,13,094.49 | |
| 7 | $7,13,094 | 2466.118461 | $3,496.06 | $7,12,064.56 | |
| 8 | $7,12,065 | 2462.556597 | $3,496.06 | $7,11,031.06 | |
| 9 | $7,11,031 | 2458.982415 | $3,496.06 | $7,09,993.99 | |
| 10 | $7,09,994 | 2455.395872 | $3,496.06 | $7,08,953.33 | |
| 11 | $7,08,953 | 2451.796925 | $3,496.06 | $7,07,909.07 | |
| 12 | $7,07,909 | 2448.185532 | $3,496.06 | $7,06,861.20 | |
| 13 | $7,06,861 | 2444.56165 | $3,496.06 | $7,05,809.71 | |
| 14 | $7,05,810 | 2440.925235 | $3,496.06 | $7,04,754.58 | |
| 15 | $7,04,755 | 2437.276245 | $3,496.06 | $7,03,695.80 | |
| 16 | $7,03,696 | 2433.614634 | $3,496.06 | $7,02,633.36 | |
| 17 | $7,02,633 | 2429.940361 | $3,496.06 | $7,01,567.24 | |
| 18 | $7,01,567 | 2426.253381 | $3,496.06 | $7,00,497.44 | |
| 19 | $7,00,497 | 2422.55365 | $3,496.06 | $6,99,423.94 | |
| 20 | $6,99,424 | 2418.841124 | $3,496.06 | $6,98,346.73 | |
| 21 | $6,98,347 | 2415.115759 | $3,496.06 | $6,97,265.79 | |
| 22 | $6,97,266 | 2411.377511 | $3,496.06 | $6,96,181.11 | |
| 23 | $6,96,181 | 2407.626334 | $3,496.06 | $6,95,092.68 | |
| 24 | $6,95,093 | 2403.862185 | $3,496.06 | $6,94,000.49 | |
| 25 | $6,94,000 | 2400.085017 | $3,496.06 | $6,92,904.52 | |
| 26 | $6,92,905 | 2396.294788 | $3,496.06 | $6,91,804.76 | |
| 27 | $6,91,805 | 2392.49145 | $3,496.06 | $6,90,701.19 | |
| 28 | $6,90,701 | 2388.674959 | $3,496.06 | $6,89,593.81 | |
| 29 | $6,89,594 | 2384.845269 | $3,496.06 | $6,88,482.60 | |
| 30 | $6,88,483 | 2381.002335 | $3,496.06 | $6,87,367.55 | |
| 31 | $6,87,368 | 2377.146111 | $3,496.06 | $6,86,248.64 | |
| 32 | $6,86,249 | 2373.276551 | $3,496.06 | $6,85,125.86 | |
| 33 | $6,85,126 | 2369.393608 | $3,496.06 | $6,83,999.20 | |
| 34 | $6,83,999 | 2365.497237 | $3,496.06 | $6,82,868.64 | |
| 35 | $6,82,869 | 2361.587391 | $3,496.06 | $6,81,734.18 | |
| 36 | $6,81,734 | 2357.664024 | $3,496.06 | $6,80,595.78 | |
| 37 | $6,80,596 | 2353.727088 | $3,496.06 | $6,79,453.46 | |
| 38 | $6,79,453 | 2349.776537 | $3,496.06 | $6,78,307.18 | |
| 39 | $6,78,307 | 2345.812324 | $3,496.06 | $6,77,156.94 | |
| 40 | $6,77,157 | 2341.834401 | $3,496.06 | $6,76,002.71 | |
| 41 | $6,76,003 | 2337.842721 | $3,496.06 | $6,74,844.50 | |
| 42 | $6,74,845 | 2333.837237 | $3,496.06 | $6,73,682.28 | |
| 43 | $6,73,682 | 2329.8179 | $3,496.06 | $6,72,516.05 | |
| 44 | $6,72,516 | 2325.784663 | $3,496.06 | $6,71,345.78 | |
| 45 | $6,71,346 | 2321.737478 | $3,496.06 | $6,70,171.46 | |
| 46 | $6,70,171 | 2317.676296 | $3,496.06 | $6,68,993.08 | |
| 47 | $6,68,993 | 2313.601069 | $3,496.06 | $6,67,810.63 | |
| 48 | $6,67,811 | 2309.511749 | $3,496.06 | $6,66,624.08 | |
| 49 | $6,66,624 | 2305.408286 | $3,496.06 | $6,65,433.44 | |
| 50 | $6,65,433 | 2301.290633 | $3,496.06 | $6,64,238.67 | |
| 51 | $6,64,239 | 2297.158739 | $3,496.06 | $6,63,039.78 | |
| 52 | $6,63,040 | 2293.012556 | $3,496.06 | $6,61,836.73 | |
| 53 | $6,61,837 | 2288.852034 | $3,496.06 | $6,60,629.53 | |
| 54 | $6,60,630 | 2284.677123 | $3,496.06 | $6,59,418.15 | |
| 55 | $6,59,418 | 2280.487774 | $3,496.06 | $6,58,202.58 | |
| 56 | $6,58,203 | 2276.283937 | $3,496.06 | $6,56,982.81 | |
| 57 | $6,56,983 | 2272.065562 | $3,496.06 | $6,55,758.82 | |
| 58 | $6,55,759 | 2267.832598 | $3,496.06 | $6,54,530.60 | |
| 59 | $6,54,531 | 2263.584995 | $3,496.06 | $6,53,298.13 | |
| 60 | $6,53,298 | 2259.322703 | $3,496.06 | $6,52,061.40 | |
| 61 | $6,52,061 | 2255.04567 | $3,496.06 | $6,50,820.39 | |
| 62 | $6,50,820 | 2250.753846 | $3,496.06 | $6,49,575.09 | |
| 63 | $6,49,575 | 2246.447179 | $3,496.06 | $6,48,325.48 | |
| 64 | $6,48,325 | 2242.125618 | $3,496.06 | $6,47,071.55 | |
| 65 | $6,47,072 | 2237.789112 | $3,496.06 | $6,45,813.28 | |
| 66 | $6,45,813 | 2233.437609 | $3,496.06 | $6,44,550.67 | |
| 67 | $6,44,551 | 2229.071057 | $3,496.06 | $6,43,283.68 | |
| 68 | $6,43,284 | 2224.689404 | $3,496.06 | $6,42,012.32 | |
| 69 | $6,42,012 | 2220.292597 | $3,496.06 | $6,40,736.55 | |
| 70 | $6,40,737 | 2215.880585 | $3,496.06 | $6,39,456.38 | |
| 71 | $6,39,456 | 2211.453315 | $3,496.06 | $6,38,171.78 | |
| 72 | $6,38,172 | 2207.010734 | $3,496.06 | $6,36,882.73 | |
| 73 | $6,36,883 | 2202.552789 | $3,496.06 | $6,35,589.23 | |
| 74 | $6,35,589 | 2198.079427 | $3,496.06 | $6,34,291.26 | |
| 75 | $6,34,291 | 2193.590594 | $3,496.06 | $6,32,988.79 | |
| 76 | $6,32,989 | 2189.086238 | $3,496.06 | $6,31,681.82 | |
| 77 | $6,31,682 | 2184.566304 | $3,496.06 | $6,30,370.33 | |
| 78 | $6,30,370 | 2180.030738 | $3,496.06 | $6,29,054.31 | |
| 79 | $6,29,054 | 2175.479488 | $3,496.06 | $6,27,733.73 | |
| 80 | $6,27,734 | 2170.912497 | $3,496.06 | $6,26,408.59 | |
| 81 | $6,26,409 | 2166.329712 | $3,496.06 | $6,25,078.87 | |
| 82 | $6,25,079 | 2161.731078 | $3,496.06 | $6,23,744.54 | |
| 83 | $6,23,745 | 2157.116541 | $3,496.06 | $6,22,405.60 | |
| 84 | $6,22,406 | 2152.486045 | $3,496.06 | $6,21,062.03 | |
| 85 | $6,21,062 | 2147.839536 | $3,496.06 | $6,19,713.82 | |
| 86 | $6,19,714 | 2143.176957 | $3,496.06 | $6,18,360.94 | |
| 87 | $6,18,361 | 2138.498253 | $3,496.06 | $6,17,003.38 | |
| 88 | $6,17,003 | 2133.803369 | $3,496.06 | $6,15,641.13 | |
| 89 | $6,15,641 | 2129.092249 | $3,496.06 | $6,14,274.17 | |
| 90 | $6,14,274 | 2124.364836 | $3,496.06 | $6,12,902.48 | |
| 91 | $6,12,902 | 2119.621073 | $3,496.06 | $6,11,526.05 | |
| 92 | $6,11,526 | 2114.860906 | $3,496.06 | $6,10,144.85 | |
| 93 | $6,10,145 | 2110.084276 | $3,496.06 | $6,08,758.88 | |
| 94 | $6,08,759 | 2105.291127 | $3,496.06 | $6,07,368.12 | |
| 95 | $6,07,368 | 2100.481401 | $3,496.06 | $6,05,972.54 | |
| 96 | $6,05,973 | 2095.655042 | $3,496.06 | $6,04,572.14 | |
| 97 | $6,04,572 | 2090.811992 | $3,496.06 | $6,03,166.90 | |
| 98 | $6,03,167 | 2085.952193 | $3,496.06 | $6,01,756.80 | |
| 99 | $6,01,757 | 2081.075587 | $3,496.06 | $6,00,341.82 | |
| 100 | $6,00,342 | 2076.182116 | $3,496.06 | $5,98,921.94 | |
| 101 | $5,98,922 | 2071.271722 | $3,496.06 | $5,97,497.16 | |
| 102 | $5,97,497 | 2066.344346 | $3,496.06 | $5,96,067.45 | |
| 103 | $5,96,067 | 2061.39993 | $3,496.06 | $5,94,632.79 | |
| 104 | $5,94,633 | 2056.438414 | $3,496.06 | $5,93,193.18 | |
| 105 | $5,93,193 | 2051.45974 | $3,496.06 | $5,91,748.58 | |
| 106 | $5,91,749 | 2046.463848 | $3,496.06 | $5,90,298.99 | |
| 107 | $5,90,299 | 2041.450678 | $3,496.06 | $5,88,844.39 | |
| 108 | $5,88,844 | 2036.420171 | $3,496.06 | $5,87,384.75 | |
| 109 | $5,87,385 | 2031.372267 | $3,496.06 | $5,85,920.07 | |
| 110 | $5,85,920 | 2026.306905 | $3,496.06 | $5,84,450.32 | |
| 111 | $5,84,450 | 2021.224026 | $3,496.06 | $5,82,975.49 | |
| 112 | $5,82,975 | 2016.123569 | $3,496.06 | $5,81,495.56 | |
| 113 | $5,81,496 | 2011.005472 | $3,496.06 | $5,80,010.51 | |
| 114 | $5,80,011 | 2005.869676 | $3,496.06 | $5,78,520.32 | |
| 115 | $5,78,520 | 2000.716118 | $3,496.06 | $5,77,024.98 | |
| 116 | $5,77,025 | 1995.544737 | $3,496.06 | $5,75,524.47 | |
| 117 | $5,75,524 | 1990.355472 | $3,496.06 | $5,74,018.77 | |
| 118 | $5,74,019 | 1985.148261 | $3,496.06 | $5,72,507.87 | |
| 119 | $5,72,508 | 1979.923041 | $3,496.06 | $5,70,991.74 | |
| 120 | $5,70,992 | 1974.679751 | $3,496.06 | $5,69,470.36 | |
| 121 | $5,69,470 | 1969.418328 | $3,496.06 | $5,67,943.72 | |
| 122 | $5,67,944 | 1964.138709 | $3,496.06 | $5,66,411.81 | |
| 123 | $5,66,412 | 1958.840832 | $3,496.06 | $5,64,874.59 | |
| 124 | $5,64,875 | 1953.524633 | $3,496.06 | $5,63,332.06 | |
| 125 | $5,63,332 | 1948.190048 | $3,496.06 | $5,61,784.20 | |
| 126 | $5,61,784 | 1942.837015 | $3,496.06 | $5,60,230.98 | |
| 127 | $5,60,231 | 1937.465469 | $3,496.06 | $5,58,672.39 | |
| 128 | $5,58,672 | 1932.075346 | $3,496.06 | $5,57,108.41 | |
| 129 | $5,57,108 | 1926.666583 | $3,496.06 | $5,55,539.02 | |
| 130 | $5,55,539 | 1921.239115 | $3,496.06 | $5,53,964.21 | |
| 131 | $5,53,964 | 1915.792876 | $3,496.06 | $5,52,383.94 | |
| 132 | $5,52,384 | 1910.327802 | $3,496.06 | $5,50,798.22 | |
| 133 | $5,50,798 | 1904.843829 | $3,496.06 | $5,49,207.00 | |
| 134 | $5,49,207 | 1899.34089 | $3,496.06 | $5,47,610.29 | |
| 135 | $5,47,610 | 1893.81892 | $3,496.06 | $5,46,008.05 | |
| 136 | $5,46,008 | 1888.277853 | $3,496.06 | $5,44,400.28 | |
| 137 | $5,44,400 | 1882.717624 | $3,496.06 | $5,42,786.94 | |
| 138 | $5,42,787 | 1877.138165 | $3,496.06 | $5,41,168.02 | |
| 139 | $5,41,168 | 1871.53941 | $3,496.06 | $5,39,543.51 | |
| 140 | $5,39,544 | 1865.921294 | $3,496.06 | $5,37,913.37 | |
| 141 | $5,37,913 | 1860.283748 | $3,496.06 | $5,36,277.60 | |
| 142 | $5,36,278 | 1854.626705 | $3,496.06 | $5,34,636.17 | |
| 143 | $5,34,636 | 1848.950098 | $3,496.06 | $5,32,989.07 | |
| 144 | $5,32,989 | 1843.25386 | $3,496.06 | $5,31,336.27 | |
| 145 | $5,31,336 | 1837.537923 | $3,496.06 | $5,29,677.75 | |
| 146 | $5,29,678 | 1831.802217 | $3,496.06 | $5,28,013.50 | |
| 147 | $5,28,013 | 1826.046676 | $3,496.06 | $5,26,343.49 | |
| 148 | $5,26,343 | 1820.27123 | $3,496.06 | $5,24,667.70 | |
| 149 | $5,24,668 | 1814.475811 | $3,496.06 | $5,22,986.13 | |
| 150 | $5,22,986 | 1808.66035 | $3,496.06 | $5,21,298.73 | |
| 151 | $5,21,299 | 1802.824776 | $3,496.06 | $5,19,605.50 | |
| 152 | $5,19,606 | 1796.969021 | $3,496.06 | $5,17,906.41 | |
| 153 | $5,17,906 | 1791.093015 | $3,496.06 | $5,16,201.45 | |
| 154 | $5,16,201 | 1785.196688 | $3,496.06 | $5,14,490.59 | |
| 155 | $5,14,491 | 1779.279969 | $3,496.06 | $5,12,773.82 | |
| 156 | $5,12,774 | 1773.342789 | $3,496.06 | $5,11,051.11 | |
| 157 | $5,11,051 | 1767.385075 | $3,496.06 | $5,09,322.44 | |
| 158 | $5,09,322 | 1761.406758 | $3,496.06 | $5,07,587.79 | |
| 159 | $5,07,588 | 1755.407766 | $3,496.06 | $5,05,847.14 | |
| 160 | $5,05,847 | 1749.388027 | $3,496.06 | $5,04,100.47 | |
| 161 | $5,04,100 | 1743.34747 | $3,496.06 | $5,02,347.77 | |
| 162 | $5,02,348 | 1737.286023 | $3,496.06 | $5,00,589.00 | |
| 163 | $5,00,589 | 1731.203613 | $3,496.06 | $4,98,824.15 | |
| 164 | $4,98,824 | 1725.100169 | $3,496.06 | $4,97,053.19 | |
| 165 | $4,97,053 | 1718.975616 | $3,496.06 | $4,95,276.11 | |
| 166 | $4,95,276 | 1712.829883 | $3,496.06 | $4,93,492.89 | |
| 167 | $4,93,493 | 1706.662896 | $3,496.06 | $4,91,703.49 | |
| 168 | $4,91,703 | 1700.474581 | $3,496.06 | $4,89,907.91 | |
| 169 | $4,89,908 | 1694.264865 | $3,496.06 | $4,88,106.12 | |
| 170 | $4,88,106 | 1688.033674 | $3,496.06 | $4,86,298.10 | |
| 171 | $4,86,298 | 1681.780933 | $3,496.06 | $4,84,483.83 | |
| 172 | $4,84,484 | 1675.506568 | $3,496.06 | $4,82,663.28 | |
| 173 | $4,82,663 | 1669.210505 | $3,496.06 | $4,80,836.43 | |
| 174 | $4,80,836 | 1662.892667 | $3,496.06 | $4,79,003.27 | |
| 175 | $4,79,003 | 1656.55298 | $3,496.06 | $4,77,163.77 | |
| 176 | $4,77,164 | 1650.191369 | $3,496.06 | $4,75,317.91 | |
| 177 | $4,75,318 | 1643.807757 | $3,496.06 | $4,73,465.66 | |
| 178 | $4,73,466 | 1637.402068 | $3,496.06 | $4,71,607.01 | |
| 179 | $4,71,607 | 1630.974226 | $3,496.06 | $4,69,741.92 | |
| 180 | $4,69,742 | 1624.524155 | $3,496.06 | $4,67,870.39 | |
| 181 | $4,67,870 | 1618.051777 | $3,496.06 | $4,65,992.39 | |
| 182 | $4,65,992 | 1611.557016 | $3,496.06 | $4,64,107.89 | |
| 183 | $4,64,108 | 1605.039793 | $3,496.06 | $4,62,216.88 | |
| 184 | $4,62,217 | 1598.500032 | $3,496.06 | $4,60,319.32 | |
| 185 | $4,60,319 | 1591.937654 | $3,496.06 | $4,58,415.20 | |
| 186 | $4,58,415 | 1585.352581 | $3,496.06 | $4,56,504.50 | |
| 187 | $4,56,505 | 1578.744735 | $3,496.06 | $4,54,587.19 | |
| 188 | $4,54,587 | 1572.114037 | $3,496.06 | $4,52,663.25 | |
| 189 | $4,52,663 | 1565.460407 | $3,496.06 | $4,50,732.66 | |
| 190 | $4,50,733 | 1558.783767 | $3,496.06 | $4,48,795.38 | |
| 191 | $4,48,795 | 1552.084037 | $3,496.06 | $4,46,851.41 | |
| 192 | $4,46,851 | 1545.361137 | $3,496.06 | $4,44,900.72 | |
| 193 | $4,44,901 | 1538.614987 | $3,496.06 | $4,42,943.28 | |
| 194 | $4,42,943 | 1531.845507 | $3,496.06 | $4,40,979.07 | |
| 195 | $4,40,979 | 1525.052615 | $3,496.06 | $4,39,008.07 | |
| 196 | $4,39,008 | 1518.236232 | $3,496.06 | $4,37,030.25 | |
| 197 | $4,37,030 | 1511.396275 | $3,496.06 | $4,35,045.59 | |
| 198 | $4,35,046 | 1504.532663 | $3,496.06 | $4,33,054.07 | |
| 199 | $4,33,054 | 1497.645315 | $3,496.06 | $4,31,055.66 | |
| 200 | $4,31,056 | 1490.734148 | $3,496.06 | $4,29,050.34 | |
| 201 | $4,29,050 | 1483.799079 | $3,496.06 | $4,27,038.08 | |
| 202 | $4,27,038 | 1476.840027 | $3,496.06 | $4,25,018.87 | |
| 203 | $4,25,019 | 1469.856908 | $3,496.06 | $4,22,992.67 | |
| 204 | $4,22,993 | 1462.84964 | $3,496.06 | $4,20,959.46 | |
| 205 | $4,20,959 | 1455.818137 | $3,496.06 | $4,18,919.22 | |
| 206 | $4,18,919 | 1448.762318 | $3,496.06 | $4,16,871.93 | |
| 207 | $4,16,872 | 1441.682097 | $3,496.06 | $4,14,817.56 | |
| 208 | $4,14,818 | 1434.57739 | $3,496.06 | $4,12,756.08 | |
| 209 | $4,12,756 | 1427.448113 | $3,496.06 | $4,10,687.47 | |
| 210 | $4,10,687 | 1420.294181 | $3,496.06 | $4,08,611.71 | |
| 211 | $4,08,612 | 1413.115508 | $3,496.06 | $4,06,528.77 | |
| 212 | $4,06,529 | 1405.912008 | $3,496.06 | $4,04,438.63 | |
| 213 | $4,04,439 | 1398.683597 | $3,496.06 | $4,02,341.26 | |
| 214 | $4,02,341 | 1391.430187 | $3,496.06 | $4,00,236.63 | |
| 215 | $4,00,237 | 1384.151693 | $3,496.06 | $3,98,124.73 | |
| 216 | $3,98,125 | 1376.848027 | $3,496.06 | $3,96,005.52 | |
| 217 | $3,96,006 | 1369.519102 | $3,496.06 | $3,93,878.99 | |
| 218 | $3,93,879 | 1362.164832 | $3,496.06 | $3,91,745.10 | |
| 219 | $3,91,745 | 1354.785128 | $3,496.06 | $3,89,603.83 | |
| 220 | $3,89,604 | 1347.379903 | $3,496.06 | $3,87,455.15 | |
| 221 | $3,87,455 | 1339.949068 | $3,496.06 | $3,85,299.05 | |
| 222 | $3,85,299 | 1332.492534 | $3,496.06 | $3,83,135.48 | |
| 223 | $3,83,135 | 1325.010214 | $3,496.06 | $3,80,964.44 | |
| 224 | $3,80,964 | 1317.502017 | $3,496.06 | $3,78,785.89 | |
| 225 | $3,78,786 | 1309.967854 | $3,496.06 | $3,76,599.80 | |
| 226 | $3,76,600 | 1302.407636 | $3,496.06 | $3,74,406.15 | |
| 227 | $3,74,406 | 1294.821272 | $3,496.06 | $3,72,204.92 | |
| 228 | $3,72,205 | 1287.208671 | $3,496.06 | $3,69,996.07 | |
| 229 | $3,69,996 | 1279.569744 | $3,496.06 | $3,67,779.59 | |
| 230 | $3,67,780 | 1271.904399 | $3,496.06 | $3,65,555.43 | |
| 231 | $3,65,555 | 1264.212544 | $3,496.06 | $3,63,323.59 | |
| 232 | $3,63,324 | 1256.494089 | $3,496.06 | $3,61,084.03 | |
| 233 | $3,61,084 | 1248.74894 | $3,496.06 | $3,58,836.72 | |
| 234 | $3,58,837 | 1240.977007 | $3,496.06 | $3,56,581.65 | |
| 235 | $3,56,582 | 1233.178195 | $3,496.06 | $3,54,318.77 | |
| 236 | $3,54,319 | 1225.352412 | $3,496.06 | $3,52,048.07 | |
| 237 | $3,52,048 | 1217.499566 | $3,496.06 | $3,49,769.51 | |
| 238 | $3,49,770 | 1209.619561 | $3,496.06 | $3,47,483.08 | |
| 239 | $3,47,483 | 1201.712305 | $3,496.06 | $3,45,188.73 | |
| 240 | $3,45,189 | 1193.777703 | $3,496.06 | $3,42,886.46 | |
| 241 | $3,42,886 | 1185.81566 | $3,496.06 | $3,40,576.22 | |
| 242 | $3,40,576 | 1177.826082 | $3,496.06 | $3,38,257.99 | |
| 243 | $3,38,258 | 1169.808873 | $3,496.06 | $3,35,931.74 | |
| 244 | $3,35,932 | 1161.763938 | $3,496.06 | $3,33,597.45 | |
| 245 | $3,33,597 | 1153.691181 | $3,496.06 | $3,31,255.09 | |
| 246 | $3,31,255 | 1145.590506 | $3,496.06 | $3,28,904.62 | |
| 247 | $3,28,905 | 1137.461816 | $3,496.06 | $3,26,546.03 | |
| 248 | $3,26,546 | 1129.305014 | $3,496.06 | $3,24,179.28 | |
| 249 | $3,24,179 | 1121.120004 | $3,496.06 | $3,21,804.34 | |
| 250 | $3,21,804 | 1112.906686 | $3,496.06 | $3,19,421.19 | |
| 251 | $3,19,421 | 1104.664965 | $3,496.06 | $3,17,029.80 | |
| 252 | $3,17,030 | 1096.394741 | $3,496.06 | $3,14,630.14 | |
| 253 | $3,14,630 | 1088.095915 | $3,496.06 | $3,12,222.18 | |
| 254 | $3,12,222 | 1079.76839 | $3,496.06 | $3,09,805.90 | |
| 255 | $3,09,806 | 1071.412065 | $3,496.06 | $3,07,381.26 | |
| 256 | $3,07,381 | 1063.026841 | $3,496.06 | $3,04,948.23 | |
| 257 | $3,04,948 | 1054.612618 | $3,496.06 | $3,02,506.78 | |
| 258 | $3,02,507 | 1046.169296 | $3,496.06 | $3,00,056.90 | |
| 259 | $3,00,057 | 1037.696775 | $3,496.06 | $2,97,598.54 | |
| 260 | $2,97,599 | 1029.194952 | $3,496.06 | $2,95,131.68 | |
| 261 | $2,95,132 | 1020.663728 | $3,496.06 | $2,92,656.29 | |
| 262 | $2,92,656 | 1012.102999 | $3,496.06 | $2,90,172.34 | |
| 263 | $2,90,172 | 1003.512665 | $3,496.06 | $2,87,679.79 | |
| 264 | $2,87,680 | 994.8926221 | $3,496.06 | $2,85,178.63 | |
| 265 | $2,85,179 | 986.2427686 | $3,496.06 | $2,82,668.82 | |
| 266 | $2,82,669 | 977.5630009 | $3,496.06 | $2,80,150.33 | |
| 267 | $2,80,150 | 968.8532158 | $3,496.06 | $2,77,623.13 | |
| 268 | $2,77,623 | 960.1133092 | $3,496.06 | $2,75,087.18 | |
| 269 | $2,75,087 | 951.3431772 | $3,496.06 | $2,72,542.47 | |
| 270 | $2,72,542 | 942.5427152 | $3,496.06 | $2,69,988.96 | |
| 271 | $2,69,989 | 933.7118182 | $3,496.06 | $2,67,426.62 | |
| 272 | $2,67,427 | 924.850381 | $3,496.06 | $2,64,855.41 | |
| 273 | $2,64,855 | 915.958298 | $3,496.06 | $2,62,275.31 | |
| 274 | $2,62,275 | 907.0354633 | $3,496.06 | $2,59,686.30 | |
| 275 | $2,59,686 | 898.0817704 | $3,496.06 | $2,57,088.32 | |
| 276 | $2,57,088 | 889.0971126 | $3,496.06 | $2,54,481.36 | |
| 277 | $2,54,481 | 880.0813829 | $3,496.06 | $2,51,865.39 | |
| 278 | $2,51,865 | 871.0344738 | $3,496.06 | $2,49,240.37 | |
| 279 | $2,49,240 | 861.9562775 | $3,496.06 | $2,46,606.27 | |
| 280 | $2,46,606 | 852.8466857 | $3,496.06 | $2,43,963.06 | |
| 281 | $2,43,963 | 843.70559 | $3,496.06 | $2,41,310.71 | |
| 282 | $2,41,311 | 834.5328813 | $3,496.06 | $2,38,649.19 | |
| 283 | $2,38,649 | 825.3284503 | $3,496.06 | $2,35,978.46 | |
| 284 | $2,35,978 | 816.0921873 | $3,496.06 | $2,33,298.50 | |
| 285 | $2,33,299 | 806.8239822 | $3,496.06 | $2,30,609.27 | |
| 286 | $2,30,609 | 797.5237246 | $3,496.06 | $2,27,910.74 | |
| 287 | $2,27,911 | 788.1913036 | $3,496.06 | $2,25,202.87 | |
| 288 | $2,25,203 | 778.826608 | $3,496.06 | $2,22,485.65 | |
| 289 | $2,22,486 | 769.4295261 | $3,496.06 | $2,19,759.02 | |
| 290 | $2,19,759 | 759.999946 | $3,496.06 | $2,17,022.97 | |
| 291 | $2,17,023 | 750.5377553 | $3,496.06 | $2,14,277.45 | |
| 292 | $2,14,277 | 741.0428412 | $3,496.06 | $2,11,522.44 | |
| 293 | $2,11,522 | 731.5150904 | $3,496.06 | $2,08,757.90 | |
| 294 | $2,08,758 | 721.9543896 | $3,496.06 | $2,05,983.80 | |
| 295 | $2,05,984 | 712.3606246 | $3,496.06 | $2,03,200.10 | |
| 296 | $2,03,200 | 702.7336812 | $3,496.06 | $2,00,406.78 | |
| 297 | $2,00,407 | 693.0734447 | $3,496.06 | $1,97,603.80 | |
| 298 | $1,97,604 | 683.3797998 | $3,496.06 | $1,94,791.12 | |
| 299 | $1,94,791 | 673.6526311 | $3,496.06 | $1,91,968.72 | |
| 300 | $1,91,969 | 663.8918225 | $3,496.06 | $1,89,136.56 | |
| 301 | $1,89,137 | 654.0972579 | $3,496.06 | $1,86,294.60 | |
| 302 | $1,86,295 | 644.2688203 | $3,496.06 | $1,83,442.81 | |
| 303 | $1,83,443 | 634.4063928 | $3,496.06 | $1,80,581.16 | |
| 304 | $1,80,581 | 624.5098577 | $3,496.06 | $1,77,709.62 | |
| 305 | $1,77,710 | 614.5790971 | $3,496.06 | $1,74,828.14 | |
| 306 | $1,74,828 | 604.6139926 | $3,496.06 | $1,71,936.70 | |
| 307 | $1,71,937 | 594.6144254 | $3,496.06 | $1,69,035.26 | |
| 308 | $1,69,035 | 584.5802764 | $3,496.06 | $1,66,123.79 | |
| 309 | $1,66,124 | 574.511426 | $3,496.06 | $1,63,202.24 | |
| 310 | $1,63,202 | 564.4077541 | $3,496.06 | $1,60,270.59 | |
| 311 | $1,60,271 | 554.2691404 | $3,496.06 | $1,57,328.81 | |
| 312 | $1,57,329 | 544.095464 | $3,496.06 | $1,54,376.85 | |
| 313 | $1,54,377 | 533.8866036 | $3,496.06 | $1,51,414.68 | |
| 314 | $1,51,415 | 523.6424375 | $3,496.06 | $1,48,442.27 | |
| 315 | $1,48,442 | 513.3628438 | $3,496.06 | $1,45,459.58 | |
| 316 | $1,45,460 | 503.0476997 | $3,496.06 | $1,42,466.57 | |
| 317 | $1,42,467 | 492.6968825 | $3,496.06 | $1,39,463.21 | |
| 318 | $1,39,463 | 482.3102686 | $3,496.06 | $1,36,449.47 | |
| 319 | $1,36,449 | 471.8877344 | $3,496.06 | $1,33,425.30 | |
| 320 | $1,33,425 | 461.4291556 | $3,496.06 | $1,30,390.67 | |
| 321 | $1,30,391 | 450.9344076 | $3,496.06 | $1,27,345.55 | |
| 322 | $1,27,346 | 440.4033652 | $3,496.06 | $1,24,289.90 | |
| 323 | $1,24,290 | 429.835903 | $3,496.06 | $1,21,223.68 | |
| 324 | $1,21,224 | 419.2318949 | $3,496.06 | $1,18,146.86 | |
| 325 | $1,18,147 | 408.5912147 | $3,496.06 | $1,15,059.39 | |
| 326 | $1,15,059 | 397.9137354 | $3,496.06 | $1,11,961.25 | |
| 327 | $1,11,961 | 387.1993299 | $3,496.06 | $1,08,852.40 | |
| 328 | $1,08,852 | 376.4478703 | $3,496.06 | $1,05,732.79 | |
| 329 | $1,05,733 | 365.6592287 | $3,496.06 | $1,02,602.39 | |
| 330 | $1,02,602 | 354.8332763 | $3,496.06 | $99,461.17 | |
| 331 | $99,461 | 343.9698842 | $3,496.06 | $96,309.09 | |
| 332 | $96,309 | 333.0689228 | $3,496.06 | $93,146.10 | |
| 333 | $93,146 | 322.1302623 | $3,496.06 | $89,972.18 | |
| 334 | $89,972 | 311.1537722 | $3,496.06 | $86,787.27 | |
| 335 | $86,787 | 300.1393218 | $3,496.06 | $83,591.36 | |
| 336 | $83,591 | 289.0867798 | $3,496.06 | $80,384.39 | |
| 337 | $80,384 | 277.9960143 | $3,496.06 | $77,166.33 | |
| 338 | $77,166 | 266.8668933 | $3,496.06 | $73,937.14 | |
| 339 | $73,937 | 255.6992841 | $3,496.06 | $70,696.79 | |
| 340 | $70,697 | 244.4930536 | $3,496.06 | $67,445.22 | |
| 341 | $67,445 | 233.2480682 | $3,496.06 | $64,182.42 | |
| 342 | $64,182 | 221.9641939 | $3,496.06 | $60,908.33 | |
| 343 | $60,908 | 210.6412962 | $3,496.06 | $57,622.91 | |
| 344 | $57,623 | 199.2792401 | $3,496.06 | $54,326.14 | |
| 345 | $54,326 | 187.8778903 | $3,496.06 | $51,017.96 | |
| 346 | $51,018 | 176.4371108 | $3,496.06 | $47,698.34 | |
| 347 | $47,698 | 164.9567652 | $3,496.06 | $44,367.24 | |
| 348 | $44,367 | 153.4367168 | $3,496.06 | $41,024.63 | |
| 349 | $41,025 | 141.8768283 | $3,496.06 | $37,670.45 | |
| 350 | $37,670 | 130.2769618 | $3,496.06 | $34,304.67 | |
| 351 | $34,305 | 118.636979 | $3,496.06 | $30,927.25 | |
| 352 | $30,927 | 106.9567414 | $3,496.06 | $27,538.15 | |
| 353 | $27,538 | 95.23610956 | $3,496.06 | $24,137.33 | |
| 354 | $24,137 | 83.47494389 | $3,496.06 | $20,724.75 | |
| 355 | $20,725 | 71.67310419 | $3,496.06 | $17,300.37 | |
| 356 | $17,300 | 59.8304498 | $3,496.06 | $13,864.15 | |
| 357 | $13,864 | 47.94683956 | $3,496.06 | $10,416.04 | |
| 358 | $10,416 | 36.02213184 | $3,496.06 | $6,956.01 | |
| 359 | $6,956 | 24.0561845 | $3,496.06 | $3,484.01 | |
| 360 | $3,484 | 12.04885492 | $3,496.06 | $0.00 | |
| House hold net income | $1,86,212 | ||||
| Annua Installment | $41,952.66 | ||||
| % of mortgage to household | 23% | ||||
| Satisfied the gross income consideration | |||||
| Refinancing option | |||||
| Principal at the end of 5 years | 652061 | ||||
| APR | 4.00% | ||||
| New Mortgage payment | -$3,113 | ||||
| Interest savings under old and new | |||||
| Interest under old mortgage | 1048800 | ||||
| New Mortgage payment | 1120680 | ||||
| Net savings | -71880 | ||||
| Refinancing cost | 10000 | ||||
| Net savings | -81880 | ||||
| Since the refinancing option results in additional outflow it is not advisable | |||||
| My disposable income is a major part that will influence the decision. If I go for refinancing I will | |||||
| have $ 371 to meet personal expenses | |||||
| Also tax savings (if any) will be a consideration |
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