Question: Bronn took out a fully amortizing, 5 / 1 hybrid, adjustable rate mortgage of $ 1 9 2 , 1 2 3 with 1 8
Bronn took out a fully amortizing, hybrid, adjustable rate mortgage of $ with year maturity. The interest rate is indexed to SOFR and the margin is
At the time of the loan origination, SOFR was The lender, however, offers a teaser rate of during the first years.
Note that the accrual rate is still based on the SOFR and the margin.
At the end of the year, the SOFR was
In the month of the year, Bronn's monthly payment equals $
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