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A borrower takes out a 30-year 3/1 hybrid mortgage loan for $200,000 with monthly payments and an initiate rate of 4 percent. The rate can
A borrower takes out a 30-year 3/1 hybrid mortgage loan for $200,000 with monthly payments and an initiate rate of 4 percent. The rate can reset with a 5 percent interest rate cap. On the first reset date, the composite rate is 6 percent. What would the Year 4 monthly payment be?
$1,067
$1,179
$1,003
$1,186
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