2. You are seeking a (30-year) ARM loan of $250,000 which will charge 3 points. Assuming you keep this loan for 4 years, what are your CF's and the yield to lender (expressed as APR)? What do you pay each year in interest? Initial rate 3.25% Annual adjustments Tbill + 2.25% (rounded to 1/8%) I Max change of 2% per year interest rate Max interest of 5% above initial rate ITbill Index, now at 2.21, then changes annually to: 3.23, 6.12, 7.76 Hand write your calculations below. This will probably require more than one page. 2. You are seeking a (30-year) ARM loan of $250,000 which will charge 3 points. Assuming you keep this loan for 4 years, what are your CF's and the yield to lender (expressed as APR)? What do you pay each year in interest? Initial rate 3.25% Annual adjustments Tbill + 2.25% (rounded to 1/8%) I Max change of 2% per year interest rate Max interest of 5% above initial rate ITbill Index, now at 2.21, then changes annually to: 3.23, 6.12, 7.76 Hand write your calculations below. This will probably require more than one page