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You need a 30-year, fixed-rate mortgage to buy a new home for $450,000. Your mortgage bank will lend you the money an APR of 6.0%
- You need a 30-year, fixed-rate mortgage to buy a new home for $450,000. Your mortgage bank will lend you the money an APR of 6.0% for this 30-year loan. However, you can afford to pay monthly payments of only $1,000, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. You plan to pay the monthly payment in the beginning of each month. How large will this balloon payment have to be for you to keep your monthly payments at $1,000?
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