document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1163691>Question 1163691</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The Simpsons are moving into their new home. They purchased it for $300,000 by putting a down payment of $120,000 towards the purchase and paying the balance with a $180,000 mortgage amortized over 25 years at 4.9% per annum (for a 3-year term). At the end of the 3-year term, the interest rate increased by 0.5%.\r<BR>\n" );
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document.write( "What is the approximate increase in their monthly payment?\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #787861 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=787861\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> you can use the following calculator to solve this problem.\r<BR>\n" );
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document.write( "<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( "you first calculate the monthly payment for a 25 year mortgage with a 3 year term at 4.5% per year.\r<BR>\n" );
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document.write( "the calculator tells you that the monthly payment is 1,000.4985 with a balloon payment at the end of the 3 year term os 167,479.3474.\r<BR>\n" );
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document.write( "here are the inputs and outputs for that analysis.\r<BR>\n" );
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document.write( "you then calculate the monthly payment for a 22 year mortgage with a 22 year term at 5% per year.<BR>\n" );
document.write( "the 22 year term on a mortgage for 22 years effectively makes it a straight 22 year loan with no balloon payment.<BR>\n" );
document.write( "you will b3e able to see this because the balloon payment comes out as 0.\r<BR>\n" );
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document.write( "there are other ways to calculate this (i used a TI-BA-II and i used excel), but this is the most straight forward and easy to do this since this calculator is designed to handle balloon payments.\r<BR>\n" );
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document.write( "my other methods yielded the same answer.\r<BR>\n" );
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