3.6 pts Question 8 An ARM loan, Loan Amount - $250,000, Monthly Payments, Index - 1-Year Treasury bil. Index at the end of year 1 is 7%. Index at the end of year 2 is 6.5%. Index at the end of year 3 is 8.0%. One Year Adjustable, Margin = 1.50%, Term - 30 years. Interest Rate Caps: annual 2% and life 5.5%, Teaser Rate - 5%. The loan has negative amortization. Loan balance in year 2 $237.522.29 5253.980 $247.424 $228,693 Previous Next > 3.6 pts Question 8 An ARM loan, Loan Amount - $250,000, Monthly Payments, Index - 1-Year Treasury bil. Index at the end of year 1 is 7%. Index at the end of year 2 is 6.5%. Index at the end of year 3 is 8.0%. One Year Adjustable, Margin = 1.50%, Term - 30 years. Interest Rate Caps: annual 2% and life 5.5%, Teaser Rate - 5%. The loan has negative amortization. Loan balance in year 2 $237.522.29 5253.980 $247.424 $228,693 Previous Next >