Question

@jim_thompson5910 I need you help wise one!!
Jordan finances $459,600 with a 25/9 balloon mortgage at 6.9%. How much will he pay for principle and interest over the life of the loan?

A) $491,312.40
B) $965,730.00
C) $721,306.34
D) $723,454.79

Answer 1

sorry just noticed this now

Answer 2

I would use that same calculator

use it to determine his monthly payment and what the balloon balance will be

Answer 3

let me know what you get

Answer 4

what would I put in for the years??

Answer 5

25 because of the "25/9"

Answer 6

"25/9" means you have a 25 yr mortgage but the balloon payment hits right after year 9

Answer 7

ok that helps a lot!

Answer 8

what monthly payment do you get

Answer 9

I got 3,219.10 but it's the same every month and I thought it was supposed to change

Answer 10

you're thinking of an ARM

Answer 11

Im so confused...

Answer 12

ARM = adjustable rate mortgage

Answer 13

what is the remaining balance in June 2024 ?

Answer 14

$373,643.54

Answer 15

you pay 9 years worth of monthly payments of $3,219.10

(3,219.10 per month)*(12 months per year)*(9 years) = 347,662.80

Answer 16

Then you add on the remaining balance because that's the balloon payment

Answer 17

and the remaining balance I would be on June of 2024 right?

Answer 18

yeah the remaining balance there

Answer 19

ok, the answer I got is $721,295.54 but that's not an option. it's close to one but not exact. now what?

Answer 20

you pay 9 years worth of monthly payments of $3,219.10

(3,219.10 per month)*(12 months per year)*(9 years) = 347,662.80

then add on the remaining balance for june 2024


(principle+interest) + (balloon payment) = (347,662.80)+(373,643.54) = 721,306.34

Answer 21

You are a life saver my friend!!! None of my teachers could have explained it to me the way you have! Thank You So Freaking Much!!! :D

Answer 22

no problem