How large will the balloon payment have to be

Assignment Help Finance Basics

Reference no: EM132011326

Question: You need a 30-year, fixed-rate mortgage to buy a new home for $265,000. Your mortgage bank will lend you the money at an APR of 5.6 percent for this 360-month loan. However, you can afford monthly payments of only $1,050, 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 $1,050? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM132011326

Questions Cloud

Radioactive isotope undergoes radioactive decay : A 2.0 gram sample of a radioactive isotope undergoes radioactive decay. If the half life of the isotope is 45 minutes

What was the price of the bonds on given dates : What was the price of the bonds on January 1, 1992, 5 years later, assuming that interest rates had fallen to 10%?

Why this would be a dilemma for the expert witness : Determine why this would be a dilemma for the expert witness and how you believe he / she should handle such a scenario in an ethical manner.

Explain the advantages of the virtual private network : Examine three (3) advantages and three (3) disadvantages of PGP and recommend whether or not the agency should use it. Post your findings.

How large will the balloon payment have to be : How large will this balloon payment have to be for you to keep your monthly payments at $1,050? (Do not round intermediate calculations and round your answer).

Compare the network-based and host-based ids use : Compare and contrast network-based and host-based IDS use in an enterprise network infrastructure.

Find what is the form cost of preferred stock financing : Nature Food Inc. needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a constant dividend.

Prepare a summary of the variances : Prepare a summary of the variances. Does the unfavorable overhead volume variance suggest that overhead cost are out of control

What are structural protective barriers : List and explain at least three List and explain at least four reasons protective barrier should be established.

User Account

All Pages