please help...
Jessie and Bob are financing $425,500 to purchase a house. They obtained a 30/8 balloon mortgage at 6.55%. What will their balloon payment be?

$379,659.89

$637,130.99

$357,491.39

$380,040.19

@whpalmer4

Question

please help...
 Jessie and Bob are financing $425,500 to purchase a house. They obtained a 30/8 balloon mortgage at 6.55%. What will their balloon payment be?

$379,659.89

$637,130.99

$357,491.39

$380,040.19 

@whpalmer4

whpalmer4 · Answer

I've tried computing that on a couple of different sites, and I don't get an answer which appears in the answer choices.  They do agree with each other to within a few pennies.  30/8 means that the payments are computed as if a 30 year fixed mortgage, with the balloon payment due after 8 years, correct?

anonymous · Answer

yes

anonymous · Answer

what would be the closest answer?

whpalmer4 · Answer

I wonder if they are lumping the last month's payment into the balloon payment, which would make it closer. I'm getting a monthly payment of $2700.28, and a balance after 96 payments of $377,155 and some cents. http://www.wolframalpha.com/input/?i=mortgage+425000+30+years+6.55%25+ for one

anonymous · Answer

so it would be the first choice?

whpalmer4 · Answer

I'm just telling you what results I got, and that they don't seem to match quite closely enough for comfort.  In my experience, banks are pretty rather about that sort of thing :-)