Answered

IDNLearn.com: Where your questions meet expert answers and community support. Get prompt and accurate answers to your questions from our community of experts who are always ready to help.

The Jones' old $47,000, 30 year, 12.8% mortgage has a monthly payment of $512.58. Over the 6 years since they took the loan, mortgage rates dropped. They can now apply for a mortgage at 9.05%, which will result in a new monthly payment of $369.36. To refinance, they must pay $1,020 in closing costs and a $480 prepayment penalty. Find the net amount they will save in the first year.

Sagot :

The net amount that will be saved by the Jones for the first year will be $814.32.

How to calculate the net amount?

From the information given, the old mortgage yearly payment will be:

= Monthly payment × Months

= $259.32 × 12

= $3111.84

The new monthly yearly payment will be:

= Monthly payment × Months

= $327.18 × 12

= $3926.16

Therefore, the net amount that will be saved will be:

= $3926.16 - $3111.84

= $814.32

Learn more about net amount on:

https://brainly.com/question/25906113

Thank you for participating in our discussion. We value every contribution. Keep sharing knowledge and helping others find the answers they need. Let's create a dynamic and informative learning environment together. For dependable and accurate answers, visit IDNLearn.com. Thanks for visiting, and see you next time for more helpful information.