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You need a 30-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank...
You need a 30-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at an APR of 3.25 percent for this 360-month loan. However, you can afford monthly payments of only $975, 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 $975?
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ekkarill92 answered 2 years agoRelated Solutions
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single balloon payment. How large will this balloon payment have to
be for you to keep your monthly payments at...
You need a 30-year, fixed-rate mortgage to buy a new home for $290,000. Your mortgage bank...
You need a 30-year, fixed-rate mortgage to buy a new home for
$290,000. Your mortgage bank will lend you the money at a 5.85% APR
(semi-annual) for this 360-month loan. However, you can afford
monthly payments of only $1,300, 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...
You need a 30-year, fixed-rate mortgage to buy a new home for $290,000. Your mortgage bank...
You need a 30-year, fixed-rate mortgage to buy a new home for
$290,000. Your mortgage bank will lend you the money at a 5.85% APR
(semi-annual) for this 360-month loan. However, you can afford
monthly payments of only $1,300, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
Can someone please explain how to solve this without using
excel. Confused with the semi-annual part. Thanks!
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