You have taken out a 1/1 ARM (the teaser rate is locked for 1 year, and...

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You have taken out a 1/1 ARM (the teaser rate is locked for 1 year, and after this 1-year initial period, interest rate begins to adjust per year) with the following loan terms: • Loan amount: $300,000 • Annual rate cap: 2% • Lifetime cap: 6% • Margin: 300 bps (3%) • Teaser rate (annual): 5% • Market index rate at the beginning of year 1: 5.5% • Market index rate at the beginning of year 2: 6.5% • Loan term in years: 30 years Q8: Please calculate the monthly payment for year 2 O $1,966.46 O $2,016.39 O $1,986.64 O $1,975.12 O No answer within +/-$10.0 of the correct one. You have taken out a 1/1 ARM (the teaser rate is locked for 1 year, and after this 1-year initial period, interest rate begins to adjust per year) with the following loan terms: • Loan amount: $300,000 • Annual rate cap: 2% • Lifetime cap: 6% • Margin: 300 bps (3%) • Teaser rate (annual): 5% • Market index rate at the beginning of year 1: 5.5% • Market index rate at the beginning of year 2: 6.5% • Loan term in years: 30 years Q8: Please calculate the monthly payment for year 2 O $1,966.46 O $2,016.39 O $1,986.64 O $1,975.12 O No answer within +/-$10.0 of the correct one.

Answer rating: 100% (QA)

Year 2 index rate 65 Interest rate for year 2 65 ... View the full answer