Question

You need a 20-year, fixed-rate mortgage to buy a new home for $180,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 240-month loan. However, you can afford monthly payments of only $950, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. Required: How large will this balloon payment have to be for you to keep your monthly payments at $950? rev: 09_17_2012 $207,848.02 $199,853.87 $193,858.25 $53,581.46 $38,924.29

Answer 1