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6.3 Home Mortgages

6.3 Home Mortgages
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  • Math Help

    A spreadsheet was used in Example 4 to make an amortization table for a balloon mortgage.

    Examples 2, 3, and 4 show several different ways to pay for a $250,000 mortgage. The table below compares the different ways.

  • Consumer Suggestion

    To read more about the various types of mortgage loans, visit Bankrate.com to compare and better understand the differences.

  • Checkpoint Solution

    Your monthly payment is

    You could also use Excel's built in payment function, pmt(), to find the monthly payment. A spreadsheet showing the amortization schedule is shown below.

    The balloon payment is $171,178.24. The total interest paid is $60,647.02.

  • Comments (1)

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    Ron Larson (author)6 years ago |
    Unless you are certain of future income, balloon payments are risky. I don't recommend them.
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