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Business, 28.07.2020 16:01 keaton3410

You need a 30-year, fixed-rate mortgage to buy a new home for $320,000. Your mortgage bank will lend you the money at a 6.15 percent APR for this 360-month loan. However, you can afford monthly payments of only $1,600, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $1,600? Please show and explain all work.

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You need a 30-year, fixed-rate mortgage to buy a new home for $320,000. Your mortgage bank will lend...
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