Stefani is purchasing a house and finances $410,350 of the purchasing price. The mortgage is a 30 year 7/3 ARM at 6.5% with a 4/13 cap structure. What will the remaining balance be after the first seven years? (show work)

A = $371,023.06

B = $217,870.06

C = $357,112.36

D = $192,479.94

Question

Hailie Riley

Mathematics

27 February, 12:57

Stefani is purchasing a house and finances $410,350 of the purchasing price. The mortgage is a 30 year 7/3 ARM at 6.5% with a 4/13 cap structure. What will the remaining balance be after the first seven years? (show work)

A = $371,023.06

B = $217,870.06

C = $357,112.36

D = $192,479.94

+5

Answers (1)

Know the Answer?

Keegan Juarez · Answer 1

I used an online mortgage calculator.

Inputted the following information:

Loan amount: 410,350

loan rate: 6.5%

loan term: 30 years

It gave me the following results:

monthly payment: 2,593.69

annual payment: 31,124.29

31,124.29 * 7 years = 217,870.03 total payment after 7 years.

Based on the Yearly Amortization Table, the remaining balance after the first seven years is $373,327.70

The figure is nearest to Choice A. 371, 023.06

Stefani is purchasing a house and finances $410,350 of the purchasing price. The mortgage is a 30 year 7/3 ARM at 6.5% with a 4/13 cap structure. What will the remaining balance be after the first seven years? (show work)A = $371,023.06B = $217,870.06C = $357,112.36D = $192,479.94

Stefani is purchasing a house and finances $410,350 of the purchasing price. The mortgage is a 30 year 7/3 ARM at 6.5% with a 4/13 cap structure. What will the remaining balance be after the first seven years? (show work)

A = $371,023.06

B = $217,870.06

C = $357,112.36

D = $192,479.94