You purchased a home 10 years ago for $200,000 and borrowed the entire amount from Broadway Bank at an APR of 6% with mo

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You purchased a home 10 years ago for $200,000 and borrowed theentire amount from Broadway Bank at an APR of 6% with monthlypayments. The original maturity of your mortgage was 30 years whenyou purchased the home. Draw a time line that depicts the cashflows from the mortgage payments from when you bought your home.Show on the time line and compute the outstanding the balancetoday. Give the inputs to your computations for full credit.Suppose you refinance your mortgage today (repay outstanding amountof old loan and borrow the same amount at a lower rate) with amortgage maturity equal to the remaining time on your currentmortgage, at an APR of 3% and monthly payments. What is the newpayment? What is the value of your savings each month fromrefinancing?