"AMORTIZATION, SAVINGS ON REFINANCING A HOME MORTGAGE. A debt such as a home mortgage (original value of loan is ORIGLOAN and original interest rate is INTRAT%1) is to be refinanced at year CURRYR1 of the original term TERMYRS1. The amount to be refinanced includes the current outstanding principal OUTSTPR1, loan origination fees called POINTS2 and all other fees suchas credit checks, surveys, attorney's costs and so on are included in FEES2. Thenew interest rate is INTRAT%2 and the new loan term, in years, is TERMYRS2. MONPAYM1 and MONPAYM2 are the old and new monthly payments. The monthly savings is MONSAV$ and the interest savings is INTRSAV$ if the new mortgage is held for YRSNEED years. *** Answers to Problem *** (a) Variables are set to proper values at entry. Their monthly savings is 546.66. (b) Their nominal interest savings for the balance of the original loan (24.5 years) is $160,718. Type any key to exit. (c) PCSCC, Inc., 1993 ||Mary and Bill Smith are refinancing their home mortgage ($102,400 at 14.75% nominal for 30 years) after 5 1/2 (5.5) years with a new 30 year mortgage at 7.5% nominal plus 2 points and $1200 of closing costs. What is their monthly savings? (b) What is there nominal (before taxes, etc.) interest savings if they hold their new mortgage for 24.5 years.? Type comma key to see answers. Type (F2) to return to application file."
