Stella is purchasing a house and finances $240,650 of the purchase price. The mortgage is a 25-year 6/2 ARM at 5.5% with a 3/10 cap structure. What will the remaining balance be after the first six years?

Question

precal · Answer

what class is this? real estate?

anonymous · Answer

no its advance algebra with financial applications

precal · Answer

yuck!  in high school?

anonymous · Answer

yes...ughh

precal · Answer

what were those crazy people thinking?  that is why they have real estate agents.  I would help but you are probably using formulas I have never seen.......makes you want to pay cash for your house

precal · Answer

did you check to see if there is a mortgage calculator on the web?  That is what I would do

anonymous · Answer

exactly! smh. but no i didn't but i am now thank you

precal · Answer

http://www.bankrate.com/calculators/home-equity/compare-loans-calculator.aspx

precal · Answer

people can't do that type of math, so many business have calculators online to help people figure that stuff out.

anonymous · Answer

thank you so much!

anonymous · Answer

Did you guys ever figure this out?