Eight years ago, you took out a mortgage on your home and ar…
Eight years ago, you took out a mortgage on your home and are currently considering refinancing into a loan at a lower rate and for a shorter term. Your original loan was for 30 years, at 4.5% interest on the $200,000 borrowed, and you pay monthly. The new loan you are considering will be for 15 years at a rate of 2.5%. Again, the payments will be monthly. What will your new payment be if you take on this new loan? (hint: first, find the balance remaining)