The monthly payment for a mortgage that is not amortized is $833.33. If the mortgage is partially amortized with a balloon payment or balance of $100,000 at the end of 30 years, the monthly payment would be lower.
To calculate the monthly payment for a mortgage that is not amortized, we need to use the formula:
Monthly Payment = Loan Amount / Loan Term
In this case, if the loan amount is $300,000 and the loan term is 30 years, the monthly payment would be:
Monthly Payment = $300,000 / (30 x 12)
Monthly Payment = $833.33
If the mortgage is partially amortized with a balloon payment or balance of $100,000 at the end of 30 years, the monthly payment would be lower since it does not need to cover the full loan amount. However, the exact amount would depend on the terms and conditions of the loan agreement.
-- The given question is incomplete, the complete question is given below:
"what is the monthly payment if the above mortgage in Q6 is not amortized? what if it is partially amortized with a balloon payment or balance of $100,000 at the end of 30 years? Q6 is A 30-year FRM loan of $300,000 is issued at an annual interest rate of 6% with monthly amortization."--