How-large-will-this-balloon-payment-have-to-be-for-you-to-keep-your-monthly-payments-at-1-350-

by

You need a 35-year, fixed-rate mortgage to buy a new home for $295,000. Your mortgage bank will lend you the money at a 5.9 percent APR for this 420-month loan. However, you can only afford monthly payments of $1,350, 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 $1,350? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)

 

 Balloon payment $