10:11 bbhosted.cuny.edu iPad 76% Balloon payment of S100,000 is due at maturity

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10:11 bbhosted.cuny.edu iPad 76% Balloon payment of S100,000 is due at maturity QUESTION 10 10 points You can afford to pay up to $2000 in payments every month for housing and have $80,000 in savings (you don't anticipate and increase in income/savings). Which of the following mortgages would allow you to buy the most expensive property? 0 A 25 year FRM with 2.5% contract interest rate and .9 LTV ( A 30 year fully amortizing FRM with 4.2% contract interest rate and .85 LTV. 0 A 30 year FRM with 4.2% contract interest rate, .9 LTV and a balloon payment of $80,000 at the end of the 5th year A 30 year mortgage with an interest only period of 5 years at a fixed contract rate 3% and 0.95 LTV. Save All Answers

Explanation / Answer

Option D: i.e. 30 years mortgage @3% with interest payment upto 5 yrs only and has LTV (loan to value ratio) .95

Reason:

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