You have a $250,000 mortgage. The 30- year fixed rate is 8.5%. You have had your house for ten years. You have 20 years remaining on your mortgage. The new 15-year mortgage rate is 5.5%.
1) What is your mortgage payment, principal and interest on your current mortgage?
2) What would your new mortgage payment, principal and interest be if you refinanced?
3) What is your monthly savings?
4) Since you only had 20 years remaining on your 30-year mortgage, what would the total amount that you would pay out if you kept your current mortgage?
5) If you chose the new 15-year mortgage, what would be the total amount that you would pay out over the 15 years?
6) Why did you save so much with the 15-year mortgage?
Sorry,that it's long I really don't understand it!
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