A mortgage lender has offered you a $497,000 30-year 3/1 Hybrid adjustable-rate mortgage (ARM) loan with monthly payments that fully amortize with $5,962 of origination fees. The initial rate of the offered loan is 7.75%, but future payments after the loan resets will be indexed to the current 10-year T-bond rate plus a margin of 165 basis points. There are no interest-rate caps on the loan, and the 10-year T-bond rate will equal 3.56% at the time the loan is originated. What is the composite rate in year 4 if the T-bond rate stay the same? Please indicate your answer as annualized percent with 2 digits right of the decimal (e.g., 0.0644 --> 6.44) and do NOT input the percent sign (%).

What is the anticipated size of the 18^th monthly payment if the T-bond rate stay the same? Please round your answer to the nearest cent (ie, two digits right of the decimal)

What is the anticipated size of the 38^th monthly payment if the T-bond rate stay the same? Please round your answer to the nearest cent (ie, two digits right of the decimal)