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% - Lifetime

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 total interest payment in Year 2? $462.32$790.06$680.72$4,526.65

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