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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

User Rmdroid
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2 Answers

6 votes

Answer: 389,460 - Apex

User Kimona
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2 votes

Answer:

Total financed cost is: $389,460

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*12*895=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*12*873=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.

User Manoj Salvi
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