A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. On the reset date, the composite rate is 6%. What would the Year 3 monthly payment be? (A) $955 (B) $1,067 (C) $1,003 (D) $1,186 (E) Because of the payment cap, the payment would not change.