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A borrower takes out a 30-year adjustable rate mortgage loan for $123,000 with monthly payments. The first two years of the loan have a teaser
A borrower takes out a 30-year adjustable rate mortgage loan for $123,000 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%. Assume that the loan allows for negative amortization. What would be the outstanding balance on the loan at the end of Year 3?
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New Issues In Financial Institutions Management
Authors: F Fiordelisi, P Molyneux, D Previati
2010th Edition
0230278108, 978-0230278103
