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just these two options Option 3) 5 year Balloon in which the 60 monthly payments are based on the payments of the 30 year loan
just these two options
Option 3) 5 year Balloon in which the 60 monthly payments are based on the payments of the 30 year loan and the 61st payment is for the (large) difference (this is kinda like leasing a car). So, the payment would be $1193 each month, but the 61st payment will be for $227,312. Option 4) 5 year Interest Only in which the 60 monthly payments are only for the interest on the loan and the 61st payment is for the full, original principal. So, the 60 monthly payments would be for $833, but the 61st payment will be for $250,000. Using what (limited) knowledge you have right now, how can we show what each of these options is worth today Step by Step Solution
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