Fixed-rate mortgage-loan in form of single balloon payment

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Reference no: EM131022593

You need a 35-year, fixed-rate mortgage to buy a new home for $245,000. Your mortgage bank will lend you the money at an APR of 5.4 percent for this 420-month loan. However, you can afford monthly payments of only $850, 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 $850? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131022593

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Fixed-rate mortgage-loan in form of single balloon payment : You need a 35-year, fixed-rate mortgage to buy a new home for $245,000. Your mortgage bank will lend you the money at an APR of 5.4 percent for this 420-month loan. However, you can afford monthly payments of only $850, so you offer to pay off any re..

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