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Mathematics, 29.04.2021 06:20 krystalhurst97
Ten years ago the Jacksons bought a house, taking out a 30 year mortgage for $220,000 at 6.75%.
This year (exactly 10 years later) they refinanced the house, taking out a new 30 year mortgage for
the remaining balance at 4.125%.
a. What was the monthly payment on the original 6.75% mortgage?
b. What was the remaining balance after 10 years (the amount they then refinanced)?
c. How much interest did they pay during those first 10 years?
d. What is the monthly payment on the refinance 4.125% mortgage?
e. How much interest will they pay over the 30 year term of the refinance?
f. How much total interest will they pay over the full 40 years the Jacksons have a loan for the
house?
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Answers: 3
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Ten years ago the Jacksons bought a house, taking out a 30 year mortgage for $220,000 at 6.75%.
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