Ask Question, Ask an Expert


Ask Basic Finance Expert

Suppose that your neighbour took the loan of $300,000 5 years ago. At that time, she took 30 year loan for 5.8%. She now wishes to regard as refinancing her loan. She went to bank and was told that refinancing her loan for 30 years would cost her $6500 direct and re financing her loan for 15 years would cost her $5000 direct. Your neighbour is low on cash and would favour to add upfront fees into her latest loan. Your neighbour comes to look for your help with her mortgage dilemma.

Can you utilize your Time Value of Money ability to aid show your neighbour if she must go for refinancing? You can guide her in terms of helping her know her present interest expense against future interest expense, present PMT against future PMT, how 15 year loan against a 30year loan would influence her finances, and so on. Assist her understand by giving her various situations so she can make good decision which suits her best. You can get present rates from any bank website by looking for under Mortgage Rates.

Give your work  by using tables/graphs/explanations.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914054

Have any Question? 

Related Questions in Basic Finance

Robert shiller of yale university has suggested a variation

Robert Shiller of Yale University has suggested a variation on ARMs in which mortgage interest rates are tied to inflation, not to short-term interest rates. Discuss the pros and cons of this idea for banks and for borro ...

Suppose you borrow 300000 at 7 for 30 years with 0 points

Suppose you borrow $300,000 at 7% for 30 years with 0 points. Suppose also that the mortgage note includes a prepayment penalty of 1% of the mortgage balance if the mortgage is prepaid within 10 years. What is the effect ...

Finanical statment analysiswrite at least 3 paragraphs

Finanical Statment Analysis Write at least 3 paragraphs answering the following: What is the SEC, and what is its role in protecting the integrity of financial statements prepared and disseminated by publically traded co ...

Why do financial intermediaries existwhat services do they

Why do financial intermediaries exist? What services do they provide to the public? Are all financial institutions financial intermediaries?

Discussion 1ratio analysisusing the ashford university

Discussion 1 Ratio Analysis Using the Ashford University Library as a resource, find two articles that discuss financial ratio analysis. Identify two advantages and two disadvantages to using ratios in financial analysis ...

Financial reporting assignment-learning outcomes -a

Financial Reporting Assignment- Learning outcomes - a) Understand and explain numerous Australian-International Financial Reporting standards relevant to reporting and an appreciation of the conceptual strengths and weak ...

Speculation with futurestoday the gross price of a 10-year

Speculation with Futures Today, the gross price of a 10-year bond with $1,000 principal amount is 116.277. At the same moment, the price of the 10-year futures contract which expires in two months is 98.03. Its nominal a ...

Is there a relationship between x rate of poverty measured

Is there a relationship between (X) rate of poverty (measured as percent of population below poverty level) and (Y) rates of teen pregnancy (measured per 1,000 females aged 15 to 17)? A researcher selected random states ...

What is a currency boardis having a fixed exchange rate

What is a currency board? Is having a fixed exchange rate with a currency board that defends the fixed rate better for a country than having a fixed exchange rate and a standard central bank that defends the fixed rate?

Homework setdirections answer the following questions on a

Homework Set Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate