A household bought their residence eight years in the past for $120,000. The house was financed by paying 20% downpayment and signing a 30-year mortgage (adjustable price mortgage) at 6.zero% per yr compounded month-to-month on the unpaid steadiness. Equal month-to-month funds had been made to amortize the mortgage over a 30-year interval. The household must borrow some $40,000 and they're contemplating borrow a house fairness mortgage.
- What's the mortgage steadiness after eight years (i.e. now)? (6 factors)
- Worth of the residence is now $145,000 and the household can borrow a house fairness mortgage of as much as 70% of the fairness of the residence. What's the most quantity the household can borrow? (four factors)
- A monetary advisor suggests the household to refinance the residence as a substitute. That's, repay the present mortgage and apply for a brand new mortgage. Do you agree with the recommendation? Why? What is going to you plan in any other case? (10 factors) Get Finance homework help right this moment