1. You are seeking a (30-year) ARM loan of $225,000 which will charge 2.5 points. You will also incur $1400 in other third party closing costs related to this loan. Assuming you keep this loan for 4 years, what are your CF's, the yield to lender and cost to borrower (expressed as APR's)? What do you pay each year in interest? Initial rate 2.75% Annual adjustments Tbill +2.0% (rounded to 1/8% ) No payment or interest rate caps - Tbill Index, now at 1.93, then changes annually to: 3.73,5.62,7.26 Is this loan teased? Explain. Cost to Borrower = 1. You are seeking a (30-year) ARM loan of $225,000 which will charge 2.5 points. You will also incur $1400 in other third party closing costs related to this loan. Assuming you keep this loan for 4 years, what are your CF's, the yield to lender and cost to borrower (expressed as APR's)? What do you pay each year in interest? Initial rate 2.75% Annual adjustments Tbill +2.0% (rounded to 1/8% ) No payment or interest rate caps - Tbill Index, now at 1.93, then changes annually to: 3.73,5.62,7.26 Is this loan teased? Explain. Cost to Borrower =