question about excel?

Question

In november of 1995 you took out a 30-year note for 250,000 to buy a house.the interest rate was at a rate of 7.8% per year.the payments were set up on monthly basis.determine if it would be benefical to refinance for the remaining term of the loan at the current rate of interest..also,can someone show me how to put all this into excel(formulas)i need this problem in excel..or send a link to a page with all the excel stuff for this problem..thanks

Answer 1

Oh sure, I love doing someone else's homework.

Answer 2

You don't need excel to figure this out. Simple math will do.



If you can get a 20 year note at 5.875% today (which you can) the savings will outway the closing costs. Since mortgage interest is front end loaded you haven't paid that much off yet, but still don't want to change the end pay off date by much, so go to a 20 year.



The principle and interest on 250 k your paying is $1812 a month.

Unless you've pre-paid it some you owe about 220 k now. A 20 yr. at 5.875% will cost you $1559 a month.



End of lesson.



e-mail me if you have more questions or actually want to pull the trigger. I can help.



Jim

Answer 3

Sorry, it has been too long since I have done one of these formulas, but go into the formula set up and it 'should' just walk you through it. I don't remember it being tooooo hard, just can't remember right off the top of my head. If that won't work, I have attached a customer service link.



http://excel.com/customerCare/