You need a 30-year, fixed-rate mortgage to buy a new home for $200,000. Your mor

Question

You need a 30-year, fixed-rate mortgage to buy a new home for $200,000. Your mortgage bank will lend you the money at a 6.5 percent APR for this loan. However, you can afford monthly payments of only $850, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. This balloon payment will have to be in the amount of $ for you to keep your monthly payments at $850. (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))

You need a 30-year, fixed-rate mortgage to buy a new home for $200,000. Your mortgage bank will lend you the money at a 6.5 percent APR for this loan. However, you can afford monthly payments of only $850, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. This balloon payment will have to be in the amount of $ for you to keep your monthly payments at $850. (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

You need a 30-year, fixed-rate mortgage to buy a new home for $200,000. Your mortgage bank will lend you the money at a 6.5 percent APR for this loan. However, you can afford monthly payments of only $850, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. This balloon payment will have to be in the amount of $ 458,108.22 for you to keep your monthly payments at $850.

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.