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Math 300

In: Science

Submitted By abdoulaye
Words 449
Pages 2
Strayer University

Finance is the study of the financial market form the credit card to the house payment. so is to say that finance is the driver of our economy .Because it does only show us how deal with interest but it also teach us what we need to refinance. The finance allows the mortgagee to see what will be the next step for his payment .so the main topic of our project will be focused on whether we should finance the loan on time or later on .so for the house in order to finance the within 20 years we need to know what will be the possible outcomes if we take that option so we will probably end up around this calculation. the monthly payment will be around 849.50 the total payment will be around 208,880 the total amount of interest accumulated at that period of time 82,880 and average of interest per payment equals 345.33 so that will be for the early on finance within the 20 years . and also the good think about that it will save you big amount of interest , by making your mind to think free of debt and it will give you more option to invest your money in order business .so the best think is to pay off the mortgage in the early years . The other option is to refinance the loan within the next 25 years. That could be an option, but not better option I will but let's do the numbers first and see the comparison. if we take the 25 years option the math will be 121,000 when R=5.75 we will come up with 761.20 for the monthly payment , Total amount 223,360.00 and total interest acquired during that period is 107,360 and the average of payment per interest = 357.86 . so that is the estimated amount of payment the mortgagee will pay in the period of 25 years .so now let me explain the pros and cons of the 25 years there could be a benefit for you if there is an inflation in the economy .and higher returns if you invest your money in the long term and if the interest in the economy goes down during that period you will benefit from that when the economy start icing . Finally, from my own perspective it is good to refinance your house as many years as you can afford .so it is up to the mortgagee to calculate the better decision. But as mentioned earlier the best to get better off loan is to finance as the years as possible to avoid big interest accumulation.

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