How much will be this balloon payment

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Reference no: EM131020356

You would like to buy a house that costs $350,000. You have $50,000 in cash to put down on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30 year mortgage that requires annual payments and has an interest rate of 7% per year. You can afford to pay only $22,970 per year. The bank allows for you to pay this amount each year, yet still borrow $300,000. At the end of the mortgage (in 30 years) you must make a balloon payment, that is you must repay the remaining balance on the mortgage. How much will be this balloon payment? Hint: The ballloon payment will be in addition to the 30th payment. Round to the nearest dollar.

Reference no: EM131020356

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