Question
1- price of a house is $ 686,000 2- A borrower wants to evaluate the loans listed below and anticipates owning the new home for
1- price of a house is $ 686,000
2- A borrower wants to evaluate the loans listed below and anticipates owning the new home for 8 years. Calculate the payments, loan balance at the end of year 8 and yield for each mortgage for the 8 year period using spread sheets.
3- Based on estimated forward rates, the index to which the ARM is tied is forecast as follows: EOY six months: 5.5% EOY 1: 4.10% EOY 18months: 5.75% EOY 2: 6.15% EOY 30months: 8.5% EOY 3: 9.25% EOY 42months: 9.5% EOY 4: 10.2% EOY 54months: 11% EOY 5: 13.0% EOY 66months: 10.0% EOY 6: 8.0% EOY 78months: 7.5% EOY7: 6.0%
4- The five different mortgages are listed below: Mortgage A: FRM @6.30 % for 30 years with 20% down payment, 1.25 point. Mortgage B: ARM @ 5.5% for 30 years with 20% down payment, 1.5 point, adjustable annually based on the index of one-year Treasuries given plus a margin of 1.50%. This loan has an annual interest rate cap of 1% and 4% interest cap over the life of the loan and no negative amortization.
can I have the spreadsheet's calculations to see each mortgage's payments please? Thanks
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