Problem 6-3 An Investor obtained a fully amortizing mortgage five years ago for $96.400 at 11 percent for 30 years. Mortgage rates have dropped, so that a fully amortizing 25-year loan can be obtained at 10 percent. There is no prepayment penalty on the mortgage balance of the original loan, but 3 points will be charged on the new loan and other closing costs will be $2,000. All payments are monthly. Assume that the investor borrows only an amount equal to the outstanding balance of the loan Required: a. Should the borrower refinance if he plans to own the property for the remaining loan term? b. Should the borrower refinance if he planned to own the property for only five more years? Complete this question by entering your answers in the tabs below. Required A Required B Should the borrower refinance if he plans to own the property for the remaining loan term? Should the borrower refinance? Required B >

Q: Pls help ASAP

A: Note- Since you have asked multiple questions we are required only to answer the first question. If…

Q: It pertains to a risk management technique when acquiring a life insurance. * risk avoidance risk…

A: One of the risk management technique is Risk Transfer where one party transfer the risk to another.…

Q: Difference between sales receipts and invoices

A:

Q: List three typical reasons for abnormal deposit drains?

A: Abnormal deposit means the depositee isn't to return the particular cash saved, however he is to…

Q: Nash Corporation borrowed $92,000 on November 1, 2025, by signing a $94,070, 3-month,…

A: Journal entry is a  primary entry that records the financial transactions initially. The…

Q: 3, Which of the following principles of insurance denotes a positive duty of the person seeking…

A: Utmost good faith principle of insurance: As a general rule, insurance contracts are governed by the…

Q: Which one of the following options is correct for a journal entry creating provision for warranty…

A: SOLUTION- THE COMPANY NEEDS TO MAKE PROVISION OF WARRANTY WHEN IT SELLS THE PRODUCT WITH THE…

Q: Under the direct write-off method, uncollectible accounts are recorded: Multiple Choice O Never. in…

A: The direct write-off method is one of the methods to recognize bad debt expenses. This methods…

Q: Which coverage under the Ontario Auto Policy (OAP 1) applies to the damage to the vehicle in not at…

A: OAP 1 policy- It sets out the detailed rights and obligations of both the insured and their…

Q: Collision and comprehensive: Multiple Choice O O Only pay the insurer Only pay the insured Are…

A: The purchase of collision insurance is often only possible in conjunction with the purchase of…

Q: What is Endorsement Of Bill? A. Extra days following the due date of the bill for making payment B.…

A: Endorsement of the bill refers to the procedure whereby the maker or holder of bill transfers the…

Q: mounts received from the sale of gift cards should be recognized by the seller at the time of sale.…

A: False. This is because Amounts received from the sale of gift cards should not be recognize at the…

Q: None

A: The most appropriate action to take to maintain the original integrity of the loan is to: Ensure…

Q: Sick pay benefits that are related to an employee's services already rendered, whose payment is…

A: The right response is that accrual is necessary when the benefits both accumulate and vest. The…

Q: multiple choice question  When special journals are used, a General Journal is   still required…

A: Special journals means a book to be maintained for recording specific items like purchase , sale ,…

Q: N/R journal entries affecting the T-accounts for the allowance for doubtful accounts.  Thank you for…

A: Date Description  Amount  Amount 01 Mar Z and Co. A/C                                   .dr…

Q: 20. The written insurance document that may include all clauses, exception and conditions is called…

A: The written insurance document that may include all clauses, exception and conditions is called…

Q: Question 7: Barring any special circumstances, over what age is an individual eligible to receive…

A: A person, be age 65 or older, must be having qualifying disability to receive medical benefits

Q: 0 Confirmation of a credit may be given by______ A, the beneficiary at the request of the importer…

A: Banks provide credit to customers for doing business and this help to grow business.

Q: A promotional item offered to buyers of specific products is called ________. Group of answer…

A: The question is asking for the term used to describe a promotional item that is offered to buyers…

Q: When compleling an insurance applicalion, a producer should A. complete as much of the application…

A: The job of the producer is to make sure that the applicant knows all the features of the insurance…

Q: Fee-for-service methods of reimbursement create strong incentives for providers to reduce the volume…

A: Fee-for-service reimbursement is a method of payment for healthcare services in which providers…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.