Answer:
$390,900
Step-by-step explanation:
Given that.
Initial payment = $965
New rapayment = $925
when she decided to refinance her ballon payment with a 30 year mortgage
In this case,
a 5/25 ballon mortgage simply means loan repayment for the first 5 years is at a fixed rate.
Which means the total amount she paid in the first five years was=
12 * 5 * $965
= $57,900
When she refinanced the payment with a 30 year mortgage, her total payment
= $925 * 12 * 30years
= $333,000
Total financed cost Patricia paid =
$57,900 + $333,000
= $390,900
