Question: A borrower takes a 30-year, fully amortizing, 5/1 ARM for $225,000 with an initial interest rate of 4.375%. Assuming the index on which the loan

A borrower takes a 30-year, fully amortizing, 5/1 ARM for $225,000 with an initial interest rate of 4.375%. Assuming the index on which the loan rate is based rises by 1% in the fourth year of the loan and remains at that level, what will the payment be in the sixth year of loan? $1,123.39 $1,241.89 $1.259.94 $1,403.71 Other solution

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