RATE COMMENTS 4.0 % The caps do not yet apply as the rate is bein established 4.0 % Rate remains fixed for the first 3 years % Index increases from 2.5% to 4% Another MICR practice. Like before, fill in ALL 5 rate fields based on the info provided. Add decimal points where necessary. Notice the ARM and caps are different. Include decimal point with your answers. Ex. 5.0 Background information: 3/1 ARM 1.5/1.5/5 cap 15 year loan % Index increases from 4% to 6% YEARS MARGIN INDEX CAPS START 1.5% 2.5% n/a 1-3 1.5% n/a n/a 1.5% 4% 1.5% (initial) 1.5% 1.5% 6 (periodic) 1.5% 1.5% 9 (periodic) 7 1.5% 1.5% 10 (periodic) 8 1.5% 1.5% (periodic) on % Index increases from 6% to 9% % Index increases from 9% to 10% 12 % Index increases from 10% to 12% 9-15 1.5% Varies See Comment n/a Rates will vary remainder of loan. They will be no higher than 7.5% +1.5% = 9% and no lower than the 1.5% margin. SUBMIT