Problem $4$ and $5-5$ Construction Loan

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 $$290,000$ now and an additional $$190,000$ 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 $10$ percent compounded rate. At the end of the two years, the balance will be converted to a traditional $30-$year mortgage at an interest rate of $6$ percent.

What will you be paying as monthly mortgage payments $($principal and interest only$)?$

Note: Do not round intermediate calculations and round your final answer to $2$ decimal places.

Payment