Question

Barbara got a 3/27 balloon mortgage and her initial payments were $1026. she decided to refinance her balloon payment with a 30-year mortgage and her new payments were $1009. what is the total financed cost she paid for her house? a. $371,340 b. $34,020 c. $363,852 d. $400,176

Answer 1

Barbara paid a total financed cost of $363,240 for her house.

Step-by-step explanation:

To find the total financed cost Barbara paid for her house, we need to calculate the original loan amount for the balloon mortgage.

Let's assume the original loan amount is represented by 'L'. The initial payments were $1026, which we can represent as a fraction of the loan amount:

$1026 = (3/27)L

By cross-multiplying, we get:

L = $1026 * (27/3) = $9182

Next, we calculate the new loan amount for the 30-year mortgage. The new payments were $1009, which we can also represent as a fraction of the loan amount:

$1009 = (1/360)L

By cross-multiplying, we get:

L = $1009 * 360 = $363,240

Therefore, the total financed cost Barbara paid for her house is $363,240.