Question: Assume a 1/1ARM without cap. Term =15 years. Initial loan balance =$10,000. The starting teaser rate =3%, margin =2%. - Periodic adjustment cap =2% -

Assume a 1/1ARM without cap. Term =15 years. Initial loan balance

Assume a 1/1ARM without cap. Term =15 years. Initial loan balance =$10,000. The starting teaser rate =3%, margin =2%. - Periodic adjustment cap =2% - Lifetime cap rate =12% - Lifetime floor rate =3% What is the beginning balance of the mortgage at the beginning of Year 2? $9,849.68$9,576.51$9,974.94$9,463.97

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