Fiona is purchasing a condominium and is financing $305,000 with a 30-year 5/1 ARM at 4.65% with a 1/12 cap structure. What will her payments be at the beginning of year 6?

Question: Brent and Amanda are purchasing a house with a 30-year, 4/1 ARM for $395,000 at 4.65% with a 3/10 cap structure. What will the difference in payments be from year 4 to year 5?

Answer rating: 100% (QA)

1 To calculate Fionas payments at the beginning of year 6 we need to determine the remaining loan balance after the first 5 years The 51 ARM indicates that the loan has a fixed interest rate for the f... View the full answer