Suppose that 10 years ago you bought a home for $110,000, paying 10% as a down payment, and financing the rest at 9% int

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Suppose that 10 years ago you bought a home for $110,000, paying10% as a down payment, and financing the rest at 9% interest for 30years.
a. Let's consider your existing mortgage: How much money did youpay as your down payment? How much money was your mortgage (loan)for? What is your current monthly payment? How much total interestwill you pay over the life of the loan?
b. This year, you check your loan balance. Only part of yourpayments have been going to pay down the loan; the rest has beengoing towards interest. You see that you still have $88,536 left topay on your loan. Your house is now valued at $150,000. How much ofthe loan have you paid off? (i.e., how much have you reduced theloan balance by? Keep in mind that interest is charged each month -it's not part of the loan balance.) How much money have you paid tothe loan company so far? How much interest have you paid so far?How much equity do you have in your home (equity is value minusremaining debt)
c. Since interest rates have dropped, you consider refinancingyour mortgage at a lower 6% rate. If you took out a new 30 yearmortgage at 6% for your remaining loan balance, what would your newmonthly payments be?
How much interest will you pay over the life of the newloan?
d. Notice that if you refinance, you are going to be makingpayments on your home for another 30 years. In addition to the 10years you've already been paying, that's 40 years total. How muchwill you save each month because of the lower monthly payment? Howmuch total interest will you be paying (you need to consider theamount from 2c and 3b)