Question: You borrow $ 3 0 0 , 0 0 0 at 5 . 8 % for a mortgage on a house, but you don't feel

You borrow $300,000 at 5.8% for a mortgage on a house, but you don't feel comfortable making payments larger than $1600 per month. The mortgage lender agrees to allow you to pay $1600 per month, then make a balloon payment at the end of the 30 year loan to cover any additional costs.
What is the value of the balloon payment
What dollar amount have you paid on the house?
How much should be paid monthly to pay down the entire loan in 30 years?
You borrow $300,000 at 5.8% for a mortgage on a house,

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

1. You will make monthly payments to paydown your $30,000 car loan over 5 years. The interest rate is 5%. How much will you pay each month? 2. You graduate college and have $35,000 in student loans....

Q:

You will receive $ 5 0 0 every 6 months for 2 0 years. The market interest rate is 7 % . What is the PV of your CF stream? You will receive $ 2 5 0 every 3 months for 2 0 years. The market rate is 7...

Q:

TARGET MARKET REPORT VJ Thomas, Amber Bowden, Megan Sozio Fangdi Hou Product Development Professor Gutman February 28, 2016 As merchandisers for Macy's Private Label, Maison Jules, we-that is VJ...

Q:

I didn't know what question this answer was about, and the answer was wrong. $11,000 - pard as . down $1,10,000 Xio y payment. Cant Annuity payment N- 110.000 $11,000 $.99,000 was your existing with...

Q:

Question: You are buying a house in Fall Creek. The neighborhood is susceptible to flooding as a result of intense summer thunderstorms and ice jams. During the decade you plan to live in the house,...

Q:

Sadik Industries must install $1 million of new machinery in its Texas plant. It can obtain a bank loan for 100% of the required amount. Alternatively, a Texas investment banking firm that represents...

Q:

Cases 24 & 25 Victoria Chemicals This week we will be doing a Capital Budgeting case.We will combine Case 24 and 25 into one long case where Victoria Chemicals will be dealing with a Mutually...

Q:

Complete the following tax return's 1040 and Schedule A. I am having a hard time understanding the assignment and how to get started. Paul and Betty Jones are married with three children. All three...

Q:

i need help with this assignment, please show all work so i could follow. I'm having a lot of difficulty with the calculator im supposed to use for the first part, so any help will be appreciated...

Q:

Use comparable to start to develop a plan for a current project using data from previous projects. As we start to develop this proforma to evaluate alternative cost proposals, we are going to build...

Q:

Which of the following actions is likely to have the highest initial cost in terms of its impact on other parts of the organization? Replace existing equipment with newer, more efficient equipment....

Q:

On January 2, 2008, Pare Company purchased 75 percent of Kidd Company's outstanding common stock. Selected balance sheet data at December 31, 20X8, is as follows: Pare Kidd Company Company Total...

Q:

5. The Factories Act 1948 defines children as persons below the age of: (a) 10 years (b) 12 years (c) 15 years (d) 18 years

Q:

hobutchery how can freemium business model work for a butchery?

Q:

A 315-foot-tall, 2-million-pound crane collapsed on a construction site in East Toledo, Ohio, killing four ironworkers. Do you think catastrophic failures like this are avoidable? If so, what steps...

Q:

What are some ways of lowering stress that the California Health Foundation emphasizes?

Q:

A safety journal presented some information about what happens when OSHA refers criminal complaints about willful violations of OSHA standards to the U.S. Department of Justice (DOJ). In one 20-year...