Margaret got a 7/23 balloon mortgage and her initial payments were $915.

She decided to refinance her balloon payment with a 30-year mortgage and

her new payments were $895. What is the total financed cost she paid for hen

house?

Answer: $399,060

Step-by-step explanation:

From the question,

The balloon mortgage = 7/23

The initial payments = $915

The time = 30 year

The new payment = $895

We are aware that 7/23 is that the loan has fixed rate for first 7 years.

Therefore, the initial payments for the 7 years will be:

Th initial payment = 7 * 12 * 915

The initial payment = $76860

The payments for 30 years when she refinance her balloon will be:

= 30 * 12 * 895

= $322200

Therefore, the total financed cost paid for the house will be:

= $76860 + $322200

= $399,060