Question

Sandra got a 3/27 balloon mortgage and her initial payments were $945. She decided to refinance her balloon payment with a 30-year mortgage and her new payments were $937. What is the total financed cost she paid for her house?

Answer 1

371,340 (APEX) hope this helps.

Answer 2

Sandra got a 3/27 balloon mortgage and her initial payments were $945.

This means Sandra paid $945 per month for 3 years. Total payment made in 3 years = 945*3*12 = $34,020

Later, she decided to refinance her balloon payment with a 30-year mortgage. Her new payments were $937.

Payment made under mortgage = 937 * 30 * 12 = $337,320

The total financed cost she paid for her house = $34020 + $ 337320 = $371340

Hope this helps..!!

Thank you :)