Example: Mortgage Refinance
If XYZ the loan amount of 1000,000.00 and current interest rate is 6%, loan term is 20 years. Later XYZ swithches to new loan term then what will be the new monthly pay, total monthly payments and total interest payments for 20 yrs if new interest rate is 5%
Answer: Mortgage Refinance as per 5% interest rate
Monthly pay =6,599.56, Total Months=240
Total Monthly payments =1,583,893.77
Total Interest = 583,893.77
Total interest for 20 years =135,540.77
Reference:https://www.investopedia.com/terms/r/refinance.asp