Five years ago, Diane secured a bank loan of $360,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 6%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to 2.5%/year compounded monthly, Diane is thinking of refinancing her property. (Round your answers to the nearest cent.) What is Diane's current outstanding principal? $ If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 2.5 %/year compounded monthly, what will be her monthly mortgage payment? $ How much less will Diane's monthly mortgage payment be if she refinances?
Five years ago, Diane secured a bank loan of $360,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 6%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to 2.5%/year compounded monthly, Diane is thinking of refinancing her property. (Round your answers to the nearest cent.)
What is Diane's current outstanding principal?
$
If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 2.5 %/year compounded monthly, what will be her monthly mortgage payment?
$
How much less will Diane's monthly mortgage payment be if she refinances?
$
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