Mike Jordan purchased a lot for for $64,000 that he planned to build a house on. To pay for the purchase, he made a cash down payment equal to 25% of the purchase price and mortgaged the balance through Notre Dame Federal Credit Union. NDFCU offered him a 15-year mortgage with monthly payments at an APR of 4.95% compounded monthly. However, since the lot mortgage was expected to later be rolled into a larger home construction bridge loan, the lot mortgage included a balloon payment provision (click hyperlink for Consumer Financial Protection Bureau’s definition) that required Jim to pay off the remaining balance after 3 years. How much will Jim’s balloon payment be at the end of three years? The balloon payment is separate from the 36th monthly payment made at the end of the third year.