Question: LOAN 4 LOAN 1 LOAN 2 LOAN 3 ? Initial Interest Rate ? Loan Maturity (years) 20 20 20 20 % Margin Above Index Adjustment

LOAN 4 LOAN 1 LOAN 2 LOAN 3 ? Initial Interest

LOAN 4 LOAN 1 LOAN 2 LOAN 3 ? Initial Interest Rate ? Loan Maturity (years) 20 20 20 20 % Margin Above Index Adjustment Interval 3% 3% 3% 1 yr. 1% 1 yr. 1% 1 yr Points 1% 1% 1%/yr 3%/yr. Interest Rate Cap NONE Which loan in the above table should have the lowest initial interest rate? Loan 1 Loan 2 Loan 3 Loan 4

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