Dennis and Darla have a 15/6 balloon mortgage for $178,800 with a rate of 3.95%. How much will they pay in interest over the life of the loan?

Question

anonymous · Answer

i just the steps to get to the answer... the formula for this one problem then i can do th rest alone.

anonymous · Answer

Sorry wish i could help. :(

anonymous · Answer

its okay :(

anonymous · Answer

A balloon mortgage is a type of mortgage in which the borrower pays a fixed monthly payment for a period of time. After this time period is up, the borrower must make a very large payment to cover the remaining balance and additional interest on the mortgage. This large amount is called the balloon payment.

anonymous · Answer

I think I can help. Give me one second. :)

anonymous · Answer

what do you mean by a 15/6 balloon mortgage?

anonymous · Answer

15/6 refers to the terms of the mortgage. The 15 means that the beginning fixed monthly payments are going to be calculated as if 
the mortgage would be paid off in 15 years. The 6 means that fixed payments will be made for 6 years. After the 6 years, the balloon payment is due.

anonymous · Answer

Dennis and Darla obtain a $178,800  15/6 balloon mortgage with a rate of 3.95%. What will her monthly payments be?
 
The monthly payment is calculated the same as a regular 15 year mortgage ... 

 $178,800/ month 


Hope this helps.

anonymous · Answer

no because when i work it out i am getting answers that are't even one of the choices :,(

anonymous · Answer

heres the formula if you can help me a little more...

anonymous · Answer

here are the choices:
 $29,807.39 

 $30,779.09 

 $36,132.26 

 $35,738.45

anonymous · Answer

i have class but i will be back shortly... PLEASE HLP !

mertsj · Answer

What is M?

mertsj · Answer

It's the last one, I think.  Because the question asks for total interest over the life of the loan.