Suppose that you decide to make minimum payment each month


You borrowed $350,000 with a 30-year fixed rate mortgage with a contract rate of 6%. For each month in the first two years of the loan, you are offered a choice between making the scheduled full amortization payment or a minimum payment of $1500. After the initial two-year period, the existing balance of the loan is amortized over the remaining 28 years. If you make the minimum payment each month for the first two years of the loan, what the new mortgage balance after making these payments?

Suppose that you decide to make the minimum payment each month for the first two years of the loan, what will your fixed payment be for the remaining term of the loan?

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Financial Management: Suppose that you decide to make minimum payment each month
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