Martinakom

Not Rated (0)

$12/per page/Negotiable

About Martinakom

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Accounting,Applied Sciences See all
Accounting,Applied Sciences,Architecture and Design,Biology,Business & Finance,Calculus,Chemistry,Computer Science,Geology Hide all
Teaching Since: Jul 2017
Last Sign in: 399 Weeks Ago
Questions Answered: 5023
Tutorials Posted: 5024
Category > Business & Finance Posted 15 Aug 2017 My Price 6.00

An investor obtained a fully amortizing mortgage 4 years ago for $100,000 at 12 percent for 30 years.

An investor obtained a fully amortizing mortgage 4 years ago for $100,000 at 12 percent for 30 years. Mortgage rates have dropped, so that a fully amortizing 25-year loan can be obtained at 10 percent. There is no prepayment penalty on the mortgage balance of the original loan, but 3 points will be charged on the new loan and other closing costs will be $2000. All payments are monthly.

 

Based on your calculations, respond to the following in a two- to three-page paper:

 

  • Explain whether or not it would be financially beneficial for the investor to refinance, if the plan is to own the property for the remaining loan term. Assume that the investor refinances an amount equal to the outstanding balance of the loan. Use your calculation(s) as evidence to support your conclusion, and explain how you arrived at the calculation(s) you include.
  • Explain whether or not it would be financially beneficial for the investor to refinance, if the investor planned to own the property for only five more years. Use your calculation(s) as evidence to support your conclusion, and explain how you arrived at the calculation(s) you include.

 

Include all calculations and explanations for how you arrived at those numbers and answer the questions completely to receive full credit.

Answers

Martinakom
Not Rated (0)
Status NEW Posted 15 Aug 2017 02:08 AM My Price 6.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- Â-----------  -----------Tha-----------nk -----------you----------- fo-----------r y-----------our----------- in-----------ter-----------est----------- an-----------d b-----------uyi-----------ng -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------. P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll -----------be -----------qui-----------ckl-----------y

Not Rated(0)
Relevent Questions