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10 September, 00:07

Margaret gat 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 her house? A. $337,320 B. $34,020 C. $399,060 D. $333,020

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  1. 10 September, 00:46
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    correct option is C. $399,060

    Step-by-step explanation:

    given data

    balloon mortgage = 7/23

    initial payments = $915

    time = 30 year

    new payments = $895

    solution

    we know here that 7/23 is that loan has fixed rate = first 7 years.

    so that initial payments for 7 years is here

    initial payment = 7 * 12 * 915

    initial payment = $76860

    and

    payments for 30 years when refinance her balloon

    payments for 30 year = 30 * 12 * 895

    payments for 30 year = $322200

    so total financed cost paid for her house is

    total financed cost = $76860 + $322200

    total financed cost = $399,060

    so correct option is C. $399,060
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