Assignment:
They currently have a 30 yr loan with an 8% annual interest rate. the original loan was for $250,000 but over three years the Taylors have reduced the loan balance to $243,200. A local bank ha offeref them a 15 yr loan with a 6.5% annual interest rate. the bank will charge a 1% fee of $2,432 (0.01x$243,200=$2,432) to prepare the paperwork associated with the new loan. the fee will be added to the existing loan balance if the Taylors refinance.
Using an an Excel Spreadsheet to determine the Taylors' existing monthly payment. Next multiply thier payment times the number of months remaininng onthe loan to detemine the tal amount of payments remaining.
- Determine the monthly payment id the Taylors refinance their loan.
- What will be the total amount the Taylors will pay the bank over the life of the if they refinance.
- What advice would you give the Taylors?
Provide complete and step by step solution for the question and show calculations and use formulas.