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mortgage+refinance-1 - mortgage The refinancing fee(2 of...

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Barry Marchman, Ph.D. Georgia Tech College of Management Mortgage Refinance $2,966.98 BOA Balance $266,360.34 Total payments (thus far) to BOA $284,829.75 Total Principal Paid to BOA $11,639.66 Total Interest Paid to BOA $273,190.09 Wachovia Fees $5,327.21 Amount financed at Wachovia $271,687.55 New Wachovia Payment $2,184.04 $782.94 6.80 $393,126.42 $126,766.08 6.8 months You currently have a 12.5%, 30-year mortgage with Bank of America (BOA). The original amount financed was $278,000. That was eight years ago. Wachovia Bank is offering a 5.25% (fixed rate) 15-year
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Unformatted text preview: mortgage. The refinancing fee (2% of the new loan amount) includes an appraisal, legal fees, taxes, title insurance, application fee, and processing fee. Calculate the following: BOA Payment: Principle & Interest only (not including taxes and insurance) Total payments to Wachovia over the life of the loan Total Interest and fees to be paid to Wachovia over the life of the loan Approximately how long would you have to keep the house in order for the refinancing decision to make sense?...
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