Fixed-rate mortgage to buy a new home

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Reference no: EM131856374

You need a 30-year, fixed-rate mortgage to buy a new home for $320,000. Your mortgage bank will lend you the money at an APR of 6.15 percent for this 360-month loan. However, you can only afford monthly payments of $1,600, 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 $1,600? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Balloon payment $

Reference no: EM131856374

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