What is Jacqueline and Keith's monad I. prior to the refinancing? paid towards the morto,„„- tr•, 2 During the fuss five years of owning their dream bon?. much money has the couple p ion of this has been applied towards interest",te!% i , 3. Had the couple opted for the original 15-year ino 1111 proposal 05 years. 6.25%)• how much higher would mild ti monthly payment have been? 4. Under the original I5-year. 6.25% mortgage option, t, , much total interest would have been paid over the life 0! i ' loan?How does this co mpare with the total interest that „ - "Olj ,' be paid on the 30-year, 7.25% mortgage? 5. If the Sommers had chosen the original l5-year, 6.25. gage proposal, how much tax shelter would they have i„,; (over the last five years) as compared to the 30-year, 7.:;„ mortgage?
- If the house is currently worth $355.000 and most lender: willing to lend up to 90% of home value, how much ex o,,,, equity can the Sommers cash out?
- Should Jacqueline and Keith cash out the excess equity than they have built up? Assume money market rates are 2.15c. 8. If the Sommers had increased each payment by one-twelfth (since the beginning of the loan), what would their current loan balance amount to?
- Using the assumption in question 8, how many total Year: would it take for the Sommers to pay off the existing lean. Demonstrate your answer with an amortization schedule.
- Should Jacqueline and Keith close the 2.75%, 15-year 111°n-gage? Explain your answer with suitable calculations.