What will you pay as monthly mortgage payments

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Reference no: EM132061095

You have secured a loan from your bank for two years to build your home. The terms of the loan are that you will borrow $110,000 now and an additional $60,000 in one year. Interest of 10 percent APR will be charged on the balance monthly. Since no payments will be made during the 2-year loan, the balance will grow. At the end of the two years, the balance will be converted to a traditional 15-year mortgage at a 8 percent interest rate. What will you pay as monthly mortgage payments (principal and interest only)?

Reference no: EM132061095

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