document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1049411>Question 1049411</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Please help, I'm stuck on this question and would appreciate any assistance. Thanks.\r<BR>\n" );
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document.write( "Five years ago, Diane secured a bank loan of $280,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 yr, and the interest rate was 12%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-yr home mortgage has now dropped to 10%/year compounded monthly, Diane is thinking of refinancing her property. How much less would Diane's monthly mortgage payment be if she refinances? Please round the answer to the nearest cent.\r<BR>\n" );
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document.write( "So far, I have used the amortization formula and for both the 12% and 10% compounded monthly and found the difference of both but it seems like my answers are still quite some ways off of the choices given: <BR>\n" );
document.write( "a) $496.75	<BR>\n" );
document.write( "b) $458.46	<BR>\n" );
document.write( "c) $479.28	<BR>\n" );
document.write( "d) $474.35	<BR>\n" );
document.write( "e) $480.33\r<BR>\n" );
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document.write( "Also, do I have to recalculate my number of payments to 25 years - 12X25 instead? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #665033 by </B><A HREF=/tutors/aboutme.mpl?userid=MathTherapy><B>MathTherapy(10552)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=MathTherapy><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=MathTherapy><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=665033\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Please help, I'm stuck on this question and would appreciate any assistance. Thanks.\r<BR>\n" );
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document.write( "Five years ago, Diane secured a bank loan of $280,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 yr, and the interest rate was 12%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-yr home mortgage has now dropped to 10%/year compounded monthly, Diane is thinking of refinancing her property. How much less would Diane's monthly mortgage payment be if she refinances? Please round the answer to the nearest cent.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "So far, I have used the amortization formula and for both the 12% and 10% compounded monthly and found the difference of both but it seems like my answers are still quite some ways off of the choices given: <BR>\n" );
document.write( "a) $496.75	<BR>\n" );
document.write( "b) $458.46	<BR>\n" );
document.write( "c) $479.28	<BR>\n" );
document.write( "d) $474.35	<BR>\n" );
document.write( "e) $480.33\r<BR>\n" );
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document.write( "Also, do I have to recalculate my number of payments to 25 years - 12X25 instead?<BR>\n" );
document.write( "<PRE STYLE=\"white-space: pre-wrap; white-space: -moz-pre-wrap; white-space: -pre-wrap; white-space: -o-pre-wrap; word-wrap: break-word;\">It's the norm, I believe for a mortgage loan to be restarted at 30 years when the loan is refinanced, even after years have passed, monthly mortgage payments<BR>\n" );
document.write( "were made, and the principal had been reduced.\r<BR>\n" );
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document.write( "After 5 years (mortgage loan was secured 5 years earlier), and after calculating amortization, the mortgage loan has reduced to $273,457.01, after monthly mortgage payments of $2,880.12 were made. 		\r<BR>\n" );
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document.write( "Since it's likely that the term of the loan was RESTARTED (30 years as opposed to 25 years), the new monthly mortgage payment, based on the new mortgage loan balance<BR>\n" );
document.write( "of $273,457.01, and the new interest rate of 10%, would be $2,399.781. <BR>\n" );
document.write( "Difference between old and new monthly mortgage payments: <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=highlight_green%28matrix%281%2C7%2C+%22%242%2C880.12%22%2C+%22-%22%2C+%22%242%2C399.781%22%2C+%22=%22%2C+%22%24480.339%22%2C+or%2C+%22%24480.33%22%29%29 ALIGN=MIDDLE   DISABLED_style= \"max-width:90%; height:auto;\" >.<BR>\n" );
document.write( "Notice that when it comes to finance, amounts are usually rounded down, and so, $480.339 becomes: $480.33 (CHOICE e) </SPAN>\n" );
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