Consider a FA 30yr LPM 5/1 ARM with no interest rate caps and no payment caps. The
Fantastic news! We've Found the answer you've been seeking!
Question:
Consider a FA 30yr LPM 5/1 ARM with no interest rate caps and no payment caps. The loan is for $500,000, with one point and other Regulation-Z fees of $10,000. The fixed period rate is 6% and the margin 2%. The underlying index at dates 0,1,2,3,4,5,6 years is 1%, 5%, 3%, 2%, 8%, 9%, 9%, respectively, and then stays at 9% until mortgage maturity. What is the APR?
Expert Answer:
Answer rating: 100% (QA)
The APR is calculated as follows First we calculate the ... View the full answer
Posted Date:
Students also viewed these finance questions
-
The loan is for $150,000 with terms 6%, 30 years. The graduation rate is 7.5% and occurs 3 times. Calculate the effective-interest cost of the loan given $1,200 in upfront lender fees
-
Period Average annual rate of inflation 3 months 5 2 years 6 5 years 8 10 years 85 20 years 9 a If the real rate of interest is currently 25 find the nominal rate of interest on each of the following...
-
Consider two bonds, one with 5 years to maturity and the other with 20 years to maturity. Both have $1,000 face values and 8% coupon rates (with annual interest payments), and both sell at par....
-
With the company expanding into several new markets in the coming months, Cable & Moore was anticipating a large increase in sales revenue. The future looked bright for this provider of...
-
What are free cash flows for a firm? What does it mean when a firms free cash flow is negative?
-
The following table shows the number of people employed by Testel Electronics over the past 10 years. How can you present thisdata? Year 1 2 3 4 5 6 7 8 9 10 Employees 24 27 29 34 38 42 46 51 60 67
-
Marketing units may be organized according to functions, products, regions, or types of customers. Describe how you would organize the marketing units for the following: a. A toothpaste with...
-
Muscle Beach, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here: Required: a. Calculate the contribution margin ratio of each product....
-
Question 34 Which cost accounting method is best for companies that engage in the purchase and sale of large items such as cars? Select one: Question 37 If the improvement costs are capitalized what...
-
1. Create and upload a histogram of the salary data for the city of Bell, where each bar width is about 50,000 US dollars. (Data for the histogram is at the bottom). a.) Is the distribution of the...
-
3. Solve each quadratic equation using the quadratic formula. Round to two decimal ay 2x2 - 17x+27=0 b) -4x+3x+8=0
-
_ _ _ _ _ _ is a corporate banking product that aids firms in collecting funds on checks received. a . EDTb.Wire transferc.Concentration system d . Lockboxa. Retail
-
Denver and Jason are brothers and have always had a close bond with each other until the death of their father Peter. Peter was a wealthy businessman and had declared in his will and last testament...
-
As marketing manager for the new Jump! athletic shoe company, you have a lot of work to do in order to compete with athletic shoe giants like Nike and Adidas. Though your company makes various kinds...
-
You estimate that the probability of a newly issued driver having an accident in any given month is 2% and the average loss during an accident is $5,000. Do 1000 simulations for each of these six...
-
Randy sold 1,000 shares of SP, Inc. stock to his son, Stan. Randy initially paid $50 per share for the stock, but sold it to Stan for $30 per share. If Stan sells the stock to an unrelated party for...
-
Tanguy Ltd. entered into a contract to sell computer workstation desks to Chirico Inc. The total contract price is $50,000, and includes installation services by Tanguy. The desks would normally sell...
-
(a) As Section 17.3 discusses, high-frequency sound waves exhibit less diffraction than low-frequency sound waves do. However, even high-frequency sound waves exhibit much more diffraction under...
-
Big Tree Petroleum incurs G&G costs of $21,000 for Project Area 12. Three areas of interest are identified. Detailed G&G is conducted on the areas of interest at the following costs: As a result of...
-
On January 1, 20XA, Rain Oil Corporation bought a developed lease for $300,000. During 20XA, Rain Oil Corporation incurred $600,000 of IDC on a successful well. Reserves of 400,000 barrels were...
-
Augusta Oil Corporation, an independent producer, began operations in June 20XA. During the first 2 years of operation, Augusta acquired only two U.S. properties, which were noncontiguous. Costs...
Study smarter with the SolutionInn App