1. You are seeking a (30-year) ARM loan of $250,000 which will charge 2 points. You will also incur $ 1500 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 2.21, then changes annually to: 3.23, 6.12, 7.76 Is this loan teased? Explain. 1. You are seeking a (30-year) ARM loan of $250,000 which will charge 2 points. You will also incur $ 1500 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 2.21, then changes annually to: 3.23, 6.12, 7.76 Is this loan teased? Explain