Question: You bought a duplex exactly 9 years ago. you paid $56,000 for the duplex. the land was worth $6,000 when you bought the duplex. you made a 20% down payment and financed the balance for 30 years at 10.5%. the loan was fully amortizing with monthly payments and you paid 3 points so the lender would fix the rate for the term of the loan. you have a need for money now and wish to borrow against the property via a second mortgage. the property has appreciated 8% per year the second mortgage terms are 14.5%, 15 years montly payments, fully amortizing, 80% loan to value ratio, with no pints required. you depreciated the improvements for 15 years using a straight line technique. each of the following response is worth 1 point. show work below. how did he get the answers?

a. How many dollars did you borrow using the second mortgage?

b. How much will you owe on the property in 5 years?