You're given with a mortgage from your credit union to buy a house that costs $620,000. Suppose you pay $124,000 for down payment and the current average market interest rate is 2.8% for the 15-year mortgage. 

Suppose that the credit union also offers you another possible payment program that is they will give you a low 1.2% interest rate for the first 6 years and with a lump-sum payment at the end of the 6^th year as $532,000. (The lump-sum payment is a one-time payment that you must pay it off or, you need to re-finance by then.) What is your monthly payment for the first 5 years? 

Answer rating: 100% (QA)

To calculate the monthly payment for the first 5 years under the low interest rate program we need to determine the loan amount and the corresponding ... View the full answer