Another week, another TVM scenario for you!
This week we're going to refinance our home mortgage to lower our monthly payment!
Before we begin, please do me a favor! I've been told that these articles are too long and I should do a maximum of one or two problems in each, rather than five or so. Please leave me a comment letting me know if you think the articles you've seen so far are too long, too short, or a good length.
THE SCENARIO:
Building off of what we did last week, the situation is this:
I put $100,000 down and borrowed $350,000 to buy a house 34 months ago. The mortgage amortizes fully over 30 years, has monthly payments of $2,241.09,and the rate is 6.625%. I still owe $338,465.83, and thanks to a generous inheritance from my late Aunt Matilda, I have $100,000 to use to help me with my mortgage.
I figure that I'm more likely to be able to ... Read more...