Help me with Balloon Mortgages?

1.
A bank is
advertising the following mortgage:



$245,000

20/4 balloon

5.8% annual rate


Monthly Payment: $1,727.11

Balloon Payment: $216,789.79


What is the total cost of this balloon mortgage?

Verified Answer :

I just answered this question. Here's my answer.

Home price is $245,000. There is no down payment mentioned. 
I understand 20/4 as amortized over 20 years and balloon payment after 4 years.

Total cost would be =  Balloon payment + Total monthly payment 

4 years x 12 months = 48 months
Balloon payment =       216,789.79 x 1 mo =   216,789.79
Total monthly payment = 1,727.11 x 47 mos =  81,174.17

Total cost = 216,789.79 + 81,174.17 = 297,963.96