You need a 25-year, fixed-rate mortgage to buy a new home for $220,000. Your mortgage bank will lend you the money at a
Posted: Tue Nov 16, 2021 8:35 am
You need a 25-year, fixed-rate mortgage to buy a new home for
$220,000. Your mortgage bank will lend you the money at a 6.6
percent APR for this 300-month loan. However, you can afford
monthly payments of only $950, 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 $950? Multiple Choice
$417,765.1 $80,595.29 $405,232.15 $60,107.05
$220,000. Your mortgage bank will lend you the money at a 6.6
percent APR for this 300-month loan. However, you can afford
monthly payments of only $950, 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 $950? Multiple Choice
$417,765.1 $80,595.29 $405,232.15 $60,107.05