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 |
ekkarill92 answered 1 year agoRelated Solutions
A small mortgage lender has one receptionist, four loan officers, and two office managers. When applicants...
A small mortgage lender has one receptionist, four loan
officers, and two office managers. When applicants apply for a new
loan in person, they first fill out paperwork with the
receptionist. Then the applicants meet with one of the loan
officers to discuss their needs. The loan officer spends additional
time processing the application after the applicants leave the
office. Finally, the application must be reviewed by an office
manager before it can be approved. The following table lists the...
1. Describe the cost-benefit analysis an individual should use when trying to decide whether or not...
1. Describe the cost-benefit analysis an individual should use
when trying to decide whether or not to invest in general
on-the-job training. Explain why these decisions may differ for
women versus men. Graphical analysis is strongly encouraged.
2. Explain general and firm-specific
on-the-job training. Would employers be less likely to
invest in general on-the-job training if they regard women as more
likely to leave? Why or why not? Would employers be less likely to
invest in firm-specific training if they...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Instructions: Each of the following scenarios illustrates one of Freud’s defense mechanisms from the list below....
- What are the SHDN, LNA in opamp What are the TXCO coding algorithm for binary and...
- Need to program a maze traversal program using dynamic array and stacks. The problem is faced...
- what were some of Ida B Wells significant contributions to the civil rights movement?
- In 2007, there were many people in Sri Lanka who have an opinion that the government...
- Example #2: Write the following set of four linear equations with 4 unknowns x1, x2, x3,...
- "In the digital age, our personal and collective privacy is threatened like it never has been...
ADVERTISEMENT