Question

Veronica got a 5/25 balloon mortgage and her initial payments were $995. She decided to refinance her balloon payment with a 30-year mortgage and her new payments were $977. What is the total financed cost she paid for her house?A.$411,420B.$34,020C.$337,320D.$399,900

Answer 1

Answer:apex- 411,420

Explanation:

Answer 2

The right answer is option A.$411,420

Explanation:

The 5/25 name means that the loan has a fixed rate for the first five years.

Given is : Veronica's initial payments were $995.

For first 5 years she paid =

`5*12*995=59700` dollars

Then she decided to refinance her balloon payment with a 30-year mortgage and her new payments were $977.

So, next payments will be for 30 years. The payments will be =

`30*12*977=351720` dollars

So, total financed cost Veronica paid for her house is =

`59700+351720=411420` dollars

Therefore, option A is the answer.