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payment and you have the money to do so. You have two mortgage choices. You can You wish to purchase a property for $300,000. You intend to make a 20% down with no closing costs (technically, the lender pays all closing costs at this rate). finance the remaining 80% with a 30 year fixed rate mortgage at an interest rate of 7% closing costs of $4000. The ARM has an annual cap of 2% and a lifetime cap of 5%. Alternatively, you can choose a 30 year, 5/1 ARM with an interest rate of 6%, and is the effective rate on the ARM if you keep the property 30 years or longer? Assume a worst case scenario (for you, the borrower) for interest rates throughout. What payment and you have the money to do so. You have two mortgage choices. You can You wish to purchase a property for $300,000. You intend to make a 20% down with no closing costs (technically, the lender pays all closing costs at this rate). finance the remaining 80% with a 30 year fixed rate mortgage at an interest rate of 7% closing costs of $4000. The ARM has an annual cap of 2% and a lifetime cap of 5%. Alternatively, you can choose a 30 year, 5/1 ARM with an interest rate of 6%, and is the effective rate on the ARM if you keep the property 30 years or longer? Assume a worst case scenario (for you, the borrower) for interest rates throughout. What
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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