A loan of $400,000 with 5% APR for 30 years with monthly payment plan was received for purchasing a new house. The home owner paid the mortgage for 10 years monthly on time. After 10 years, the home owner's request to refinance the rest of the loan for the next 20 years was approved with 4% APR. After 10 years of paying the loan with 4% APR, the home owner's request to refinance the rest of the loan for the last 10 years was approved with 3% APR. What is the mortgage for the last 10 years?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
A loan of $400,000 with 5% APR for 30 years with monthly payment plan was received for purchasing a new house. The home owner paid the mortgage for 10 years monthly on time. After 10 years, the home owner's request to refinance the rest of the loan for the next 20 years was approved with 4% APR. After 10 years of paying the loan with 4% APR, the home owner's request to refinance the rest of the loan for the last 10 years was approved with 3% APR. What is the mortgage for the last 10 years?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
