Question

Kristi got a 7/23 balloon mortgage and her initial payments were $895. She decided to refinance her balloon payment with a 30-year mortgage and her new payments were $873. What is the total financed cost she paid for her house? A) $333,020 B) $399,060 C) $34,020 D) $316,128

Answer 1

Answer:

Total financed cost is: $389,460

Step-by-step explanation:

The 7/23 name means that the loan has a fixed rate for the first seven years.

Now Kristi's initial payments for 7 years will be =

$7\times12\times895=75180$ dollars

Then she decided to refinance her balloon payment with a 30-year mortgage and her new payments were $873.

So, payments for 30 years will be =

$30\times12\times873=314280$ dollars

Now, the total financed cost she paid for her house will be =

$75180+314280=389460$ dollars

This option is not given, but this is the correct answer.

Answer 2

Answer: 389,460 - Apex