Question: 8. When an underwriter evaluates a potential borrower, they deem them capable of paying if one of the front-end OR back-end PTI requirements is met.

8. When an underwriter evaluates a potential borrower, they deem them capable of paying if one of the front-end OR back-end PTI requirements is met.

True

False

9. Angelica wants to take out an Adjustable Rate Mortgage for $708082. She is offered a 30 year, 3/1 ARM with an initial teaser rate of 3.75%. The reset margin on the loan is 300 basis points above 1 year CMT. What will be Angelica's monthly mortgage payments during the first three years with this mortgage? State your answer as a number rounded to two decimal points (e.g. if the answer is $2345.123, write 2345.12)

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