Question
You need a 20-year, fixed-rate mortgage to buy a new home for $170,000. Your mortgage bank will lend you the money at a 8.6 percent
You need a 20-year, fixed-rate mortgage to buy a new home for $170,000. Your mortgage bank will lend you the money at a 8.6 percent APR for this 240-month loan. However, you can afford monthly payments of only $800, 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 $800?
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The Art Of Distressed M And A Buying Selling And Financing Troubled And Insolvent Companies
Authors: H. Peter Nesvold, Jeffrey Anapolsky , Alexandra Reed Lajoux
1st Edition
0071750193,0071750304
