In: Finance
1. Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes an APR of 4%, compounded monthly; mortgage payments would be monthly, beginning one month after the closing on your home purchase. In the tenth year of your mortgage (months 109 through 120), what would be the total dollar amount of the interest paid?
Do not round at intermediate steps in your calculation.
2. Suppose that you take out a mortgage loan with the following characteristics:
What is the size of the balloon payment?
Do not round at intermediate steps in your calculation.
Monthly payment of the mortgage is $2219.06
Below is the amortization schedule for the mortgage:
So, during 109 to 120th month total interest paid amount is
$5284.99
b.
Below is the amortization schedule for the mortgage:
So, the required balloon payment is $232635.89