Fixed-rate mortgage to buy new home

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Reference no: EM131860400

You need a 25-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 8.1 percent APR for this 300-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?

Reference no: EM131860400

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Fixed-rate mortgage to buy new home : You need 25-year, fixed-rate mortgage to buy new home for $210,000.How large will this balloon payment have to be for you to keep your monthly payments at $950?

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