# You need a 30-year, fixed-rate mortgage to buy a new home for \$240,000….

Credit and mortgage advice Forums Home Mortgage You need a 30-year, fixed-rate mortgage to buy a new home for \$240,000….

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• #205062
Anonymous
Inactive

…Your mortgage bank will lend you the m? You need a 30-year, fixed-rate mortgage to buy a new home for \$240,000. Your mortgage bank will lend you the money at a 6.35 percent APR for this 360-month loan. However, you can afford monthly payments of only \$1,150, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. This balloon payment will have to be in the amount of _____ for you to keep your monthly payments at \$1,150.
I have worked this question, I figured out that the monthly payment should be \$1493.47 but what I can’t figure out is how to calculate the difference of the interest accumulating to add up for the balloon payment.

• #258747
Karol Pope
Member

It will be in the amount of the number of dollars that show up on your calculator after you do your homework problem yourself.