The mortgage on your house is five years old. It required monthly payments of $1402, hadan original term of 30 years & had an interest rate of 10%. In the intervening five years, interestrates have fallen & so you have decided to refinance- that is, you will roll over the outstanding balance into a new mortgage. The new mortgage has a 30-year term, requires monthly payments & has an interest rate of 6.625%
Required:
a) What monthly repayments will be required with the new loan?
b) If you still want to pay off the mortgage in 25 years, what monthly payments should youmake after you refinance?