Question
You need a 30-year, fixed-rate mortgage to buy a new home for $380,000. Your mortgage bank will lend you the money at a 2.9 percent
You need a 30-year, fixed-rate mortgage to buy a new home for $380,000. Your mortgage bank will lend you the money at a 2.9 percent APR for this loan. However, you can afford monthly payments of only $1500, 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 $1500?
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart
7th Edition
1265521972, 978-1265521974
