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:
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 =
@@MATH_TOKEN_0@@ 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.