Harper is shopping for a home and a mortgage for $175,800 with which to purchase this home. In her search, she was eligible for three different mortgages:

a 30-year, fixed-rate mortgage at 6.15%

a 30-year, 6/1 adjustable-rate mortgage at 5.89% with a 2/9 cap

a 30/6 balloon mortgage at 5.1%

I need help figuring out the adjustable-rate mortgage and the balloon mortgage. Whatever I do seems to confuse me even more than I already am. I was able to figure out the fixed-rate mortgage I just need some guidance in finding out the total cost / monthly payments for adjustable-rate mortgage and balloon mortgage.

Question

Harper is shopping for a home and a mortgage for $175,800 with which to purchase this home. In her search, she was eligible for three different mortgages:

a 30-year, fixed-rate mortgage at 6.15%

a 30-year, 6/1 adjustable-rate mortgage at 5.89% with a 2/9 cap

a 30/6 balloon mortgage at 5.1%

I need help figuring out the adjustable-rate mortgage and the balloon mortgage. Whatever I do seems to confuse me even more than I already am. I was able to figure out the fixed-rate mortgage I just need some guidance in finding out the total cost / monthly payments for adjustable-rate mortgage and balloon mortgage.

TETSXPREME · Answer

Welcome To QuestionCove

Im confused what your tryna figure out

redsky · Answer

I need help figuring out the adjustable-rate mortgage and balloon mortgage monthly payments and total cost. The information regarding both is stated above but my apologies for making it confusing!

I can't do either to save my life and whenever I do attempt I tend to get a completely different answer but the question is free-response so I don't have options to choose from.

redsky · Answer

Ah, never mind! I think I figured it out (hopefully)!