Question

Joanne and Bill are financing $305,500 to purchase a house. They obtained a 20/6 balloon mortgage at 5.75%. What will their balloon payment be?

Answer 1

@Rainbow_Penguin i see you looking but can you help?

Answer 2

whats a 20/6 ballon mortgage?

Answer 3

@perl 20/6 refers to the terms of the mortgage. The 20 means that the beginning fixed monthly payments are going to be calculated as if
the mortgage would be paid off in 20 years. The 6 means that fixed payments will be made for 6 years. After the 6 years, the balloon payment is due.

Answer 4

no help ? :(

Answer 5

@brookie5150