Afford the down payment to get a typical mortgage

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Reference no: EM131011671

Andy couldn’t afford the down payment to get a typical mortgage. The bank has offered Andy an interest only loan to buy his first house. The loan terms are 6% APR compounded semiannually on a 5 year term with monthly payments. Andy will need to borrow $350,000 to buy the house.

How much are Andy’s payments?

How much interest did Andy pay over the term of the loan?

How much is still owing on the house after the 5 year term?

Reference no: EM131011671

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