Home / Expert Answers / Algebra / five-years-ago-diane-secured-a-bank-loan-of-360-000-to-help-finance-the-purchase-of-a-loft-in-the-pa936

(Solved): Five years ago, Diane secured a bank loan of $360,000 to help finance the purchase of a loft in the ...



Five years ago, Diane secured a bank loan of $360,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 8%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to 4.5%/year compounded monthly, Diane is thinking of refinancing her property. (Round your answers to the nearest cent.) (a) What is Diane's current monthly mortgage payment? $ (b) What is Diane's current outstanding principal? $ (c) If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 4.5%/year compounded monthly, what will be her monthly mortgage payment? $ (d) How much less will Diane's monthly mortgage payment be if she refinances? $



We have an Answer from Expert

View Expert Answer

Expert Answer


We have an Answer from Expert

Buy This Answer $5

Place Order

We Provide Services Across The Globe