Question
please show work so i can learn the steps, thank you. Your property owner is considering purchasing a property for $2,800,000 and has been able
please show work so i can learn the steps, thank you.
Your property owner is considering purchasing a property for $2,800,000 and has been able to obtain an 80 percent loan. This loan; however, is a balloon mortgage. The actual fixed debt payments are based on a 25-year monthly amortization at 6.75 percent interest, but the balloon loan is actually due in 10 years.
Your property owner asked you to calculate the following a. If this was not a balloon loan, what would the monthly payment be? b. Since this is a balloon loan, what would the monthly payment be? c. As a balloon loan, what is the balloon balance due at the end of 10 years? d. How much interest is paid in year 5? e. Assume the lender charges three points to secure this loan. How much will the lender receive
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