The end of the loan in the form of single balloon payment

Assignment Help Financial Management

Reference no: EM131317588

You need a 30-year, fixed-rate mortgage to buy a new home for $305,000. Your mortgage bank will lend you the money at an APR of 6 percent for this 360-month loan. However, you can afford monthly payments of only $1,450, 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 $1,450?

Reference no: EM131317588

Questions Cloud

Determine the total discount or premium for each issue : Indicate whether each bond was sold at a discount, at a premium, or at its par value. - Determine the total discount or premium for each issue.

How is it related to the phase constant : What is the direction of propagation for a uniform plane wave having its electric field in the negative y-direction and its magnetic field in the positive z-direction?

Short-term financing resources : Identify at least two sources of working capital (short-term financing resources) that are used in organizations to finance current assets. What are the implications if an organization's current assets are not properly matched? Include at least o..

Summarize all the articles given below : Discuss about the Implementation of active surveillance in electronic health records at pediatric institutions. Also explain Improving documentation of quality measures in the electronic health record.

The end of the loan in the form of single balloon payment : You need a 30-year, fixed-rate mortgage to buy a new home for $305,000. Your mortgage bank will lend you the money at an APR of 6 percent for this 360-month loan. However, you can afford monthly payments of only $1,450, so you offer to pay off any re..

Discuss the principle of an antenna array : What is the direction of the magnetic field for a uniform plane wave having its electric field in the positive z-direction and propagating in the positive x-direction?

Equity reit and a mortgage reit : Management of Real Estate is very important to maintain the value of the investment. Give several reasons for this and use specific situations. What is the difference between an Equity REIT and a Mortgage REIT?

Confine their radiation to the region between the two sheets : What should be the spacing and the relative phase angle of the current densities for an array of two infinite, plane, parallel current sheets of uniform densities, equal in magnitude, to confine their radiation to the region between the two sheets..

Calculate the after tax cost of calling the issue : For each of the callable bond issues in the following table, calculate the after-tax cost of calling the issue.- The firm is in the 40 percent tax bracket.

User Account

All Pages