Problema 30 year fixed-rate constant payment fully, Ask an Expert

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Problem:

A 30 year fixed-rate constant payment fully amortizing mortgage loan was made 10 years ago for $75,000 at 6% interest. The borrower would like to prepay the mortgage balance by $10,000

Required:

1. Assume he can reside his monthly mortgage payment, what is the new mortgage payment?

2. Assuming the loan maturity is shortened and using the original monthly payment, what's is new loan maturity?

Note: Please provide reasons to support your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149118

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