Please show exactly how to solve this in excel and all steps in excel please. Five years ago, Charles purchased a house for $500,000. Charles borrowed a mortgage with 80% of LTV (loan to value ratio). The interest rate on the mortgage is 5%. Payment terms are being made monthly to amortize the loan over 30 years. Charles has found another lender who will refinance the current outstanding loan balance at 4.0% with monthly payments for 30 years. The new lender will charge two discount points on the new loan. Other refinancing costs will equal $2,000. What is the monthly payment for the current loan? What is the new loan amount if Charles chooses to refinance? What is the monthly payment for the new loan? What is the effective cost of Charles new loan if he holds the loan for 30 years? If Charles wants to refinance today, at least how many years should he stay in the house (do not prepay)? Explain?

Please show exactly how to solve this in excel and all steps in excel please. Five years ago, Charles purchased a house for $500,000. Charles borrowed a mortgage with 80% of LTV (loan to value ratio). The interest rate on the mortgage is 5%. Payment terms are being made monthly to amortize the loan over 30 years. Charles has found another lender who will refinance the current outstanding loan balance at 4.0% with monthly payments for 30 years. The new lender will charge two discount points on the new loan. Other refinancing costs will equal $2,000. What is the monthly payment for the current loan? What is the new loan amount if Charles chooses to refinance? What is the monthly payment for the new loan? What is the effective cost of Charles new loan if he holds the loan for 30 years? If Charles wants to refinance today, at least how many years should he stay in the house (do not prepay)? Explain?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Stephen has just purchased a home for $125,000. A mortgage company has approved his loan application for a 30-year fixed-rate loan at 5.00%. Stephen has agreed to pay 25% of the purchase price as a down payment. Find the total interest Stephen will pay if he pays the loan on schedule. E Click the icon to view the table of the monthly payment of principal and interest per $1,000 of the amount financed. The total interest is S. (Round to the nearest cent as needed.)
Please show all steps in excel to solve this. Five years ago, Charles purchased a house for $500,000. Charles borrowed a mortgage with 80% of LTV (loan to value ratio). The interest rate on the mortgage is 5%. Payment terms are being made monthly to amortize the loan over 30 years. Charles has found another lender who will refinance the current outstanding loan balance at 4.0% with monthly payments for 30 years. The new lender will charge two discount points on the new loan. Other refinancing costs will equal $2,000. What is the monthly payment for the current loan? What is the new loan amount if Charles chooses to refinance? What is the monthly payment for the new loan? What is the effective cost of Charles new loan if he holds the loan for 30 years? If Charles wants to refinance today, at least how many years should he stay in the house (do not prepay)? Explain?
Please help solve this and please show all the steps to solve this step by step. Two years ago, Martin purchased a house for $100,000. Martin borrowed a mortgage with 80% of LTV (loan to value ratio). The interest rate on the mortgage is 6%. Payment terms are being made monthly to amortize the loan over 30 years. Martin has found another lender who will refinance the current outstanding loan balance plus all the costs associated with the new loan at 4.5% with monthly payments for 30 years. Suppose that the new lender will charge three discount points on the new loan and other refinancing costs will equal $3,000. What is the new loan amount if you choose to refinance? What is Martin's monthly payment for the new loan? What is the effective cost of Martin's new loan and do you refinance if he holds the loan for 30 years?
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