A Mortgage with a Balloon Payment. You've taken out a 25-year, $75,250 mortgage at 13.8% annual interest. You anticipate that you will own the house for four years and then sell it, repaying the loan in a "balloon payment." What will be the size of your balloon payment?

Answer rating: 100% (QA)

To calculate the size of the balloon payment we first need to determine the remaining balance on the ... View the full answer