Last week, the local newspaper mortgage rate column reported that the rate for a 30-year fixed-rate mortgage was 3.88 percent, while the rate for a 7-year balloon payment mortgage was 3.45 percent (payments were calculated on the basis of 30-year amortization). A 1-year ARM was available for 3.25 percent (payments were also calculated on the basis of 30-year amortization). Assuming a loan amount of $120,000, calculate the payment for each mortgage.

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Sure assuming a loan amount of 120000 heres the monthly payment calculation for each mortgage type 1 ... View the full answer