Refinancing and Loan Restructuring

Free SOA Exam FM (Financial Mathematics) lesson in Loans. 12 min read, ~1,736 words.

Refinance in two stages: compute the outstanding balance, then treat it as a brand-new loan:. Total interest across a restructure = (all payments made) − (original principal), summed over both phases. Interest-only period: pay each period (balance stays ), then amortize over the remaining term. Lower payment is not lower...