Thursday

July 31, 2014

July 31, 2014

Posted by **mary** on Friday, February 22, 2013 at 3:08pm.

Escrow payment

$261.13

Principle and Interest payment

$822.84

Total Payment

$1,083.97

Current Loan Balance

$130,794.68

Write a one to two (1-2) page paper in which you address the following:

Part 1

With your current loan, explain how much additional money you would need to add to your monthly payment to pay off your loan in 20 years instead of 25. Decide whether or not it would be reasonable to do this if you currently meet your monthly expenses with less than $100 left over.

•(a) Explain your strategy for solving the problem.

•(b) Present a step-by-step solution of the problem.

•(c) Clearly state your answer to Part 1. What is your decision?

Part 2

Identify the highest interest rate you could refinance at in order to pay the current balance off in 20 years and determine the interest rate, to the nearest quarter point, that would require a monthly total payment that is less than your current total payment. The interest rate that you qualify for will depend, in part, on your credit rating. Also, refinancing costs you $2,000 up front in closing costs.

•(a) Explain your strategy for solving the problem.

•(b) Present a step-by-step solution of the problem.

•(c) Clearly state your answer to Part 2. What is your decision?

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