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October 25, 2014

October 25, 2014

Posted by **t** on Tuesday, August 9, 2011 at 10:30am.

Escrow payment: $232.78

Principle and Interest payment: $751.90

Total payment: $984.68

Current Loan balance: $121,259.44

Then, answer these questions:

1. Assuming you currently meet your monthly expenses with no left over to speak of, how much more money a month do you need to make in order to pay off your loan in 20 years instead of 25? Is this reasonable?

2. Is it more or less reasonable to consider refinancing your loan? In order to answer this, you need to look at different interest rates. Know that if you refinance, your minimum monthly payments will be based on a thirty-year loan (though you still want to be done in 20 years). Also, refinancing costs you a couple of thousand dollars up front in closing costs.

- algebra -
**Henry**, Tuesday, August 9, 2011 at 4:48pm$121,259.44 @ 5.6% for 20 yrs.

Pt = Po*r*t / (1 - (1+r)^-t),

r=5.6% / 12 = 0.46667% / mo = 0.004667 = Monthly % rate expressed as a decimal.

t = 20yrs * 12mo/yr = 240 mo.

Pt=121,259.44*0.004667*240 / (1-(1.004667)^-240 = 135,820.27/0.672895=

$201,238.09.

Monthly(I+p) = $840.99.

Escrow = 232.78

Total = $1073.77.

Increase = 1073.77 - 984.68 = $89.09.

- algebra -
**Melanie**, Friday, November 11, 2011 at 8:44pmSo the answer would be to be able to pay 89.09 more a month.

- algebra -
**ann**, Sunday, November 27, 2011 at 10:32pmMake a 5% offer on a Volkswagen New Beetle that has a sticker price of $22,120 and a dealer cost of $20,868

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