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22 Mar 2018
You need a 35-year, fixed-rate mortgage to buy a new home for $325,000. Your mortgage bank will lend you the money at a 6.20 percent APR for this 420-month loan. However, you can afford monthly payments of only $1,650, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment.
How large will this balloon payment have to be for you to keep your monthly payments at $1,650?
| You need a 35-year, fixed-rate mortgage to buy a new home for $325,000. Your mortgage bank will lend you the money at a 6.20 percent APR for this 420-month loan. However, you can afford monthly payments of only $1,650, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. |
| How large will this balloon payment have to be for you to keep your monthly payments at $1,650? |
Nestor RutherfordLv2
23 Mar 2018
