Re-computing the monthly installment of the mortgage loan.
Ricky and Lucy have decided to refinance their home mortgage loan. Their current home mortgage loan is for $500,000. The mortgage interest rate is 6.75% and it is to be paid off in 30 years with equal monthly payments. After 3 full years of payments, Ricky and Lucy will refinance the balance at 3.0%, to be paid off in 15 years with equal monthly payments. What will Ricky and Lucy's new monthly payments be? (Please be sure to show how calculations are made. Excel alone is not sufficient. Be careful with round-off, because a mortgage payment includes cents, as well. Answer must be precise.) Show calculations.