Adjustable Rate Mortgage Problem

Adjustable Rate Mortgage Problem 5. Assume that you obtain a 3/1 ARM in the amount of $350,000 with an initial interest rate of 4.5%. The loan uses the One Year Constant Maturity Treasury yield ("One Year Treasury") as the index rate. The margin is 2.5%. Looking at the table below which forecasts the One Year Treasury, calculate the mortgage payments for each of [Ethe ears 1-5 months 1-60 . Periode Yeare 2nd Yea 3rd Yea 4th ear 5th Yeare Year 1 Required Payment?eJ Year 2 Required Payment?e Year 3 Required Payment? Year 4 Required Payment?e Year 5 Required Payment?eJ One Year Treas 2.00/oe 2.250/oe 2.750/oe 3.350/oe 3.950/oe