Refinancing and Loan Restructuring

Free SOA Exam FM (Financial Mathematics) lesson in Loans. 14 min read, ~2,139 words.

Refinance in two stages: compute the outstanding balance, then treat it as a brand-new loan:. Total interest across a restructure =, subtracting the original principal only once. Interest-only period: pay each period (balance stays ), then amortize over the remaining term. Lower payment is not lower cost. A longer term...