Question 10 An ARM loan, Loan Amount - $250,000; Monthly Payments Index = 1-Year Treasury bill. Index at the end of year 1 is 7%. Index at the end of year 2 is 6.5%. Index at the end of year 3 is 8.0% One Year Adjustable, Margin - 1.50%, Term - 30 years. Interest Rate Caps: annual 2% and life 5.5%, Teaser Rate - 5%. The loan has negative amortization. Monthly payment in year 3 $1779.35 $172932 51947.66 3195356 Previous Next Question 10 An ARM loan, Loan Amount - $250,000; Monthly Payments Index = 1-Year Treasury bill. Index at the end of year 1 is 7%. Index at the end of year 2 is 6.5%. Index at the end of year 3 is 8.0% One Year Adjustable, Margin - 1.50%, Term - 30 years. Interest Rate Caps: annual 2% and life 5.5%, Teaser Rate - 5%. The loan has negative amortization. Monthly payment in year 3 $1779.35 $172932 51947.66 3195356 Previous Next