Question

barbara got a 3/27 balloon mortgage and her initial payments were $1026

Answer 1

Answer:

Step-by-step explanation:

Given Barbara got a 3/27 balloon mortgage and her initial payments were $1026. She decided to refinance her balloon payment with a 30-year mortgage and her new payments were $1009. What is the total financed cost she paid for her house?

The initial payment was $1026 and obtained 3/27 balloon mortgage.

So for 3 years Barbara paid $1026

3 yrs is 12 x 3 = 36 months

So for 3 years 1026 x 36 = $36,936 as total payment.

Now she refinanced her payment to 30 year mortgage and so new payment was $1009.

So for 30 x 12 = 360 years we get

1009 x 360

= $ 363240

Now total financed cost she paid was 363240 + 36,936 = $400,176