Posted: April 22nd, 2017

You would like to buy the house and take the mortgage described in Problem 36. You can afford to pay only $23,500 per year.

You would like to buy the house and take the mortgage described in Problem 36. You can afford to pay only $23,500 per year. The bank agrees to allow you to pay this amount each year, yet still borrow $300,000. At the end of the mortgage (in 30 years), you must make a balloon payment; that is, you must repay the remaining balance on the mortgage. How much will this balloon payment be?
You have just made an offer on a new home and are seeking a mortgage. You need to borrow