The bank issues a 5-year, interest-only, floating-rate loan in the amount $800,000. The teaser rate is 1.75%
Question:
The bank issues a 5-year, interest-only, floating-rate loan in the amount $800,000. The teaser rate is 1.75% for one year. The margin is 3% and the index for years 1-5 are 2.5%, 3.25, 4.00%,3.75%, 5.00%, respectively. There is an annual cap of 2% and a total lifetime cap of 7.5%. What is the total interest paid on this loan.
How much does a borrower need to earn if they are buying a $1,250,000 house with 20% down and the interest rate is 6.5% and amortization is 360 months. The real estate taxes are $20,000 annually and the property insurance is $4,000. The borrower has a $1,000 month payment on his boat, his car loans total $1,200 and credit cards are $2,000 per month. The debt-to-earnings ratio (back ratio) is 43%.
Excel Sheet Please
Financial Markets And Institutions
ISBN: 978-0132136839
7th Edition
Authors: Frederic S. Mishkin, Stanley G. Eakins