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ELEN [110]
4 years ago
7

What is the main difference between ballon mortgage and arm

Business
2 answers:
LenKa [72]4 years ago
4 0

Answer:

A balloon mortgage is a type of a loan that requires the borrower to make the payment as a lump-sum at the maturity period while under the ARM the borrower is allowed to choose the small periodic payments suitable for both the lender and the borrower.  

ARM is the abbreviation for Adjustable Rate Mortgage. therefore the loan repayment changes according to agreement between the lender and the  borrower.

OverLord2011 [107]4 years ago
3 0

Explanation:

Mortgages is a legal document between the lender and the borrower. Lender can be a bank or a financial institution which takes the borrower's property as a collateral and charge a percentage of interest on the money. A Balloon mortgage is a loan in which the borrower has to pay the lump sum amount to fulfill repayment. Balloon loans are short term duration loans. These are interest only installment payments. ARM Mortgage is the Adjustable Rate mortgage in which the percentage of interest is adjusted periodically on the basis of index

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The rate of return on an investment is the investors gain or loss on the investment over a period of time. 
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3 years ago
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A ​data warehouse is an integrated collection of data that can include seemingly unrelated information, no matter where it is stored in the company.

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8 0
2 years ago
J&J Enterprises wants to issue eighty 20-year, $1,000 zero-coupon bonds. If each bond is to yield 8%, how much will J&J
vitfil [10]

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$17,163.86

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present value = future value / (1 + interest rate)ⁿ

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5 0
3 years ago
1. The interest tax shield (tax deductibility of interest) is a key reason why: the required rate of return on assets rises when
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where t is the tax rate being rate beteen 0 and 1

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7 0
3 years ago
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notsponge [240]
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