Emily obtains a $1,250,000 balloon mortgage for an investment property. The mortgage has terms of 30/5 at an interest rate of 3.5%. The monthly payment is $5,613.06. How much is the remaining balance after 5 years rounded to the nearest dollar?

$913,216

$1,041,667

$1,079,005

$1,121,213

Question

Emily obtains a $1,250,000 balloon mortgage for an investment property. The mortgage has terms of 30/5 at an interest rate of 3.5%. The monthly payment is $5,613.06. How much is the remaining balance after 5 years rounded to the nearest dollar?

$913,216

$1,041,667

$1,079,005

$1,121,213

anonymous · Answer

@dumbcow 
@ankit042

anonymous · Answer

@dumbcow @ankit042 @AwesomeB

anonymous · Answer

D.30/5 means is that you pay the mortgage just as if it was a 30 year mortgage

but at the end of 5 years, you would make a lump sum payment to pay off the remaining balance or refinance into some other type of mortgage

anonymous · Answer

Answer is D.

dumbcow · Answer

again a finance calculator or software that will amortize the loan would be needed here

anonymous · Answer

I used this http://www.mortgageqna.com/mortgage-loan-types/5-year-balloon-mortgage-different-from-a-5-1-arm.html

anonymous · Answer

i posted another guysssss

anonymous · Answer

tag me in it so i can answer it

dumbcow · Answer

@kenbaby , try to learn how to use the website yourself so you dont need help

anonymous · Answer

i am tryingg