Question: a 30 year, fully amortizing, $200000 adjustable mortgage (ARM) with the following term: initial interest rate = 5.5% index 1- year Treasuries, payment reset each

a 30 year, fully amortizing, $200000 adjustable mortgage (ARM) with the following term: initial interest rate = 5.5% index 1- year Treasuries, payment reset each year, margin =2%, interest rate cap =1% annually and 3% lifetime, discount points = 2%. the index is as follows, end of year 1 to end of year 3: 5% , 6.5%, and 7.5% negative amortization Is allowed 21 what Is the mortgage rate for year 1?

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