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A 30-year 1/1 ARM has an initial rate of 3.85%. In the future, the rate will reset to 225 basis points above the LIBOR index
A 30-year 1/1 ARM has an initial rate of 3.85%. In the future, the rate will reset to 225 basis points above the LIBOR index with no rate caps or floors. In 1 year, at the time of the first reset, the LIBOR is 1%. What interest rate will be used to compute payments at the first reset? Write your answers as a percent rounded to two decimal points without any signs Mr. Assan makes $11,345/month. He is applying for a mortgage that requires at most 28% front end PTI and 36% back-end PTI. His other debt obligations are estimated to be around $1,300/month. What is the maximum qualified mortgage payment that Mr. Assan can have? Aiva and her husband Janis bought a house worth $350,000. They invested $120,000 in home improvements and sold the house for $1,200,000 15 years later. Their closing costs from sale were $13774. What is Aiva and Janis's taxable capital gain income from this transaction? (Hint: the capital gain tax exemption for married couples is $500,000) State your answer as a number rounded to two decimal points
A 30-year 1/1 ARM has an initial rate of 3.85%. In the future, the rate will reset to 225 basis points above the LIBOR index with no rate caps or floors. In 1 year, at the time of the first reset, the LIBOR is 1%. What interest rate will be used to compute payments at the first reset? Write your answers as a percent rounded to two decimal points without any signs
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