Answer:
Please note that the calculation assumes simple interest and doesn't take into account any other fees or costs associated with the refinancing process. It's always recommended to consult with a financial professional or mortgage lender for accurate and specific information regarding mortgage refinancing.
Explanation:
Based on the information provided, let's break down the events and calculate the interest paid and the remaining principal balance after the refinancing.
Original Mortgage Note:
Principal Balance: $1,000,000
Interest Rate: 11%
Interest Paid up to December 31, 2021: We need to calculate this amount.
To calculate the interest paid up to December 31, 2021, we need to determine the number of days from January 1, 2021, to December 31, 2021. Assuming it's a non-leap year, there are 365 days in total.
Interest Paid up to December 31, 2021:
= Principal Balance * Interest Rate * (Days Passed / Days in a Year)
= $1,000,000 * 11% * (365 / 365)
= $110,000
Therefore, the interest paid up to December 31, 2021, is $110,000.
Refinancing on March 1, 2022:
Cash Payment on Principal Balance: $442,000
Refinanced Amount: $1,000,000 - $442,000 = $558,000
After the cash payment, the remaining principal balance is $558,000, which will be refinanced with a new 10-year mortgage note.
Please note that the calculation assumes simple interest and doesn't take into account any other fees or costs associated with the refinancing process. It's always recommended to consult with a financial professional or mortgage lender for accurate and specific information regarding mortgage refinancing.