Question 12 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. What is the effective cost for a 3-year holding period? 0.709 B15% 0758% 3.63% Previous Next > Question 12 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. What is the effective cost for a 3-year holding period? 0.709 B15% 0758% 3.63% Previous Next >