A couple took out a $369,000.00 mortgage ten years ago. The original terms calle

Question

A couple took out a $369,000.00 mortgage ten years ago. The original terms called for 30 years of monthly payments at a 6.12% APR. The couple has made all payments over the last 10 years. Currently, the couple is considering re-financing their mortgage The couple has been offered a chance to refinance their mortgage balance. The new mortgage will be for 30 years at the lower rate of 3.00% APR with monthly compounding. The mortgage will call for monthly payments What is the current balance on their existing mortgage? Answer Format: Currency: Round to: 2 decimal places

Explanation / Answer

Monthly payments=PMT(6.12%/12,12*30,369000)=$2,240.89
Loan outstanding=FV(6.12%/12,12*10,-2240.89,369000)=$309,784.25

Cureent balance on exisitng mortgage=$309,784.25

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