9. Angelica wants to take out an Adjustable Rate Mortgage for $708082. She is offered a 30 year, 3/1 ARM with an initial teaser rate of 3.75%. The reset margin on the loan is 300 basis points above 1 year CMT. What will be Angelica's monthly mortgage payments during the first three years with this mortgage? State your answer as a number rounded to two decimal points (e.g. if the answer is $2345.123, write 2345.12)

13. Which statement is FALSE about the 7/1 ARM with a teaser rate of 3% indexed to a 1 year CMT with a margin of 250 basis points.

		A borrower will have a fixed rate of 3% for the first seven years of the mortgage
		The interest rate will reset annually after the initial period with a teaser rate
		The new fully indexed rate will be 2.5% above the 1 year CMT
		The eight payment on this mortgage is different from the first seven payments