document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1163692>Question 1163692</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Charmaine is applying for a mortgage of $197,000 amortized over 20 years. The bank offers the following rates: One-year term: 7.25%, Two-year term: 7.6%, Three-year term: 7.8%, Four-year term: 7.95%, Five-year term: 8.05%, and Seven-year term: 8.25%.\r<BR>\n" );
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document.write( "What is the current difference in monthly payments between the one-year term and the four-year term? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #787855 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=787855\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> correct me if i'm wrong, but i believe you are talking about a balloon payment mortgage.<BR>\n" );
document.write( "this type of mortgage calculates monthly payments based on a 20 year fixed loan, but the loan matures at the end of the term specified.<BR>\n" );
document.write( "this means you have a balloon payment at the end of the loan that is due to the lender.<BR>\n" );
document.write( "how you satisfy that balloon is not specified, i.e., you pay cash, you take another loan out, you sell the property, etc ........<BR>\n" );
document.write( "there is an online calculator that will calculate the balloon payment for you.<BR>\n" );
document.write( "that calculator can be found at <a  rel=nofollow HREF= \"https://www.mortgagecalculator.org/calcs/balloon.php#currentrates\" target = \"_blank\">https://www.mortgagecalculator.org/calcs/balloon.php#currentrates</a>\r<BR>\n" );
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document.write( "my inputs to that calculator are shown below:\r<BR>\n" );
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document.write( "1 year term loan\r<BR>\n" );
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document.write( "loan amount = 197000<BR>\n" );
document.write( "annual interest rate = 7.25%<BR>\n" );
document.write( "initial loan term = 1<BR>\n" );
document.write( "upfront payment = 0<BR>\n" );
document.write( "loan origination fee = 0<BR>\n" );
document.write( "add origination fee to loan = no<BR>\n" );
document.write( "amortization schedule = 20\r<BR>\n" );
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document.write( "calculator comes back with:\r<BR>\n" );
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document.write( "balloon payment required at end of loan = 192,448.75<BR>\n" );
document.write( "monthly payment = 1,557.04\r<BR>\n" );
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document.write( "4 year term loan\r<BR>\n" );
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document.write( "loan amount = 197000<BR>\n" );
document.write( "annual interest rate = 7.95%<BR>\n" );
document.write( "initial loan term = 4<BR>\n" );
document.write( "upfront payment = 0<BR>\n" );
document.write( "loan origination fee = 0<BR>\n" );
document.write( "add origination fee to loan = no<BR>\n" );
document.write( "amortization schedule = 20\r<BR>\n" );
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document.write( "calculator comes back with:\r<BR>\n" );
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document.write( "balloon payment required at end of loan = 178,055.60<BR>\n" );
document.write( "monthly payment = 1,641.66\r<BR>\n" );
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document.write( "the outputs from that calculator are shown below:\r<BR>\n" );
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document.write( "1 year term loan\r<BR>\n" );
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document.write( "4 year term loan'\r<BR>\n" );
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document.write( "i also used excel to calculate the monthly payment and to find the balloon payment.\r<BR>\n" );
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document.write( "those results are shown below:\r<BR>\n" );
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document.write( "one year term loan:\r<BR>\n" );
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document.write( "4 year term loan:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2020/082205.jpg\" >\r<BR>\n" );
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document.write( "i believe the questions was:\r<BR>\n" );
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document.write( "What is the current difference in monthly payments between the one-year term and the four-year term?\r<BR>\n" );
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document.write( "the answer to that would be:\r<BR>\n" );
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document.write( "the difference between the monthly payment on the 1 year term loan and the 4 year term loan is:\r<BR>\n" );
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document.write( "1641.66 minus 1557.04 = $84.62\r<BR>\n" );
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document.write( "the monthly loan payment amount on the 4 year term loan is $84.62 higher than the monthly loan payment amount on the 1 year term loan.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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