Answered

Get comprehensive solutions to your questions with the help of IDNLearn.com's experts. Join our Q&A platform to get accurate and thorough answers to all your pressing questions.

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

We appreciate your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and come back for more insightful information.