Compare term extension and total payments
See this course’s project requirements
A fictional mortgage servicing ledger with escrow reconciliation, transfer checks, refinance break-even and hardship contact plan.
Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.
What to include
- An annotated mortgage statement and debt roll-forward.
- An escrow ledger and next-year bill/deposit comparison.
- A transfer-continuity checklist and unexplained-difference log.
- A refinance break-even worksheet with limitations.
- A remaining-term and total-payment comparison with prepayment questions.
- A completed mortgage servicing file and verified-help question plan.
Review and revise
Use these criteria to check your work and choose what to improve.
- All supplied records reconcile and the decision uses the named case rules.
- Calculations show units, intermediate values and a second check.
- Changed-input practice revises the affected result and identifies uncertainty.
- The final project combines six lesson records, separates fictional assumptions from current rules, and states a supported next step.
Want more background?
The idea in everyday life
This is an original fictional practice case. No account, payment, personal record or outside participation is required. Remaining scenario A: 60 payments $700, final principal $0. Refinance B: 84 payments $550, upfront $1,000, final principal $0. These are supplied complete cash flows.
Lower payment and lower total cost are distinct; a term reset can extend how long interest is paid.
Compare term extension and total payments — worked practice
Lower payment and lower total cost are distinct; a term reset can extend how long interest is paid.
Use paper or a local table; label all amounts as fictional USD unless the case names another unit. Remaining scenario A: 60 payments $700, final principal $0. Refinance B: 84 payments $550, upfront $1,000, final principal $0. These are supplied complete cash flows.
Complete term-extension cash flows
Paste at A1.
| AScenario | BPayments remaining | CPayment USD | DSeparate upfront USD | EFinal principal USD |
|---|---|---|---|---|
| A | 60 | 700 | 0 | 0 |
| B | 84 | 550 | 1000 | 0 |
Copy as plain text
1. Step 1: Record the different remaining terms
Record the different remaining terms.
You should see: 60 months versus 84 months.
Lower payment and lower total cost are distinct; a term reset can extend how long interest is paid.
2. Step 2: Compute complete scheduled cash payments
Compute complete scheduled cash payments.
You should see: A $42,000; B 84×550+1000=$47,200.
Keep this intermediate result so the final decision can be checked.
3. Step 3: Compare periodic and total amounts
Compare periodic and total amounts.
You should see: B saves $150/month but pays $5,200 more overall.
Keep this intermediate result so the final decision can be checked.
4. Step 4: Write a capacity-versus-cost conclusion
Write a capacity-versus-cost conclusion.
You should see: A lower monthly amount may help capacity but is not evidence of lower total cost; check actual fees and balances.
Keep this intermediate result so the final decision can be checked.
What to finish
A remaining-term and total-payment comparison with prepayment questions.
Watch for this
Comparing two payment totals while ignoring different terminal debt.
How can I tell I understand it?
Compare whole-term mortgage scenarios with consistent ending-debt treatment on the supplied changed case while preserving the stated rule and checking the final record.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
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Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
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Source & access notes · checked 2026-10-01
Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.
Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.
Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.
Source & access notes · checked 2026-10-01
Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.
Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.
Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.
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