Question: What is the maximum rate that a borrower could face at the second reset on the following loan: 1/1 ARM Loan Amount = 367,000 Initial

What is the maximum rate that a borrower could face at the second reset on the following loan:

1/1 ARM

Loan Amount = 367,000

Initial rate = 7.5%

Adjustment cap = 1.5%

Lifetime cap = 6%

Please enter your answer such that 2.375% would be input as 2.375.

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