Suppose the index goes to 18 percent in year 5. What is the effective cost of this

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Suppose the index goes to 18 percent in year 5. What is the effective cost of this ARM? What cap affected the rate in year 5?

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Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

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Question Posted: Sep 26, 2018 12:48 PM

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Suppose the index goes to 18 percent in year 5. What is the effective cost of the ARM? Does the payment cap keep the effective cost from rising?
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Suppose the index goes to 18 percent in year 5. What is the effective cost of this

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