Updated over 13 years ago on .
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refinancing & net worth
http://www.investopedia.com/articles/pf/07/refinancing_mortgage.asp#axzz2H8V7K2FB
I built an amortization table to corroborate his "net worth" numbers but there are 2 conceptual issues I need further elaboration on.
1. Why are the net worth savings based on the beginning of the period principal balances of the loans (i.e. $200,000 instead of $199,753.11)?
2. In the 238th month, why does net worth become negative? Is it because of the higher overall interest paid over the longer loan term?