Hope this gives you your answer..... There is something called a Fixed-Rate Mortgage with a Temporary Buydown. (see 1st reference) You owe $1075 but pay $500. The remaining $575 is added to the original balance. So, $100,575 should be the answer. Negative Amortization is the term given this practice. (Se reference #2).
If this were truly a good question, the REAL answer would be---that whatever you borrowed the $100,000 for would be reposessed because you AGREED to payments of $1075 and are only PAYING $500.... No lendor will let you get away with that... so if you purchased a home with that money---the bank would put a lien against the home until they either got all the back money that is due Missouri the house would be the LENDORS.....however, for the sake of this quetion based solely on the answers given to choose from, the answer would be (C) $99,500 the exact answer would be $99,553 so it's APPROXIMATE loan balance will be C...
What about the late fees?
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