Answer: $399,060
Explanation:
From the question,
The balloon mortgage= 7/23
The initial payments= $915
The time= 30 year
The new payment= $895
We are aware that 7/23 is that the loan has fixed rate for first 7 years.
Therefore, the initial payments for the 7 years will be:
Th initial payment = 7 × 12 × 915
The initial payment = $76860
The payments for 30 years when she refinance her balloon will be:
= 30 × 12 × 895
= $322200
Therefore, the total financed cost paid for the house will be:
= $76860 + $322200
= $399,060