Mr. Smith bought a $ 260000 house 8 years ago. The house is now worth $ 520000 . Originally, the house was financed by paying 25% down with the rest financed through a 15-year mortgage at 10% interest. After making 96 monthly house payments,Mr. Smith is now in need of cash, and would like to refinance the house. The finance company is willing to loan 85% of the current value of the house amortized over 30 years at 6% interest.
How much cash will the owner receive after paying the balance
of the original loan?

Amount of cash obtained = $

If he uses all of the available cash for something
other than investing in his home,
by how much will his monthly payment increase?

Increase in monthly payment = $