Assignment 4B: Complex ARM Amortization Schedule Stop Step Nie the same from your Fixed Rate Morgage (FRM) Step 12: Determine Payment of Principal and terest ca Nou will put down to percent in the balance with a IX LIBOR ARMI years with a 28 pund 2239 L-year You will mainthly payment and the current spred 15 LIBOR Rates at loan luar bu ema range from 20. 10. petencer the life of the nextgage BOR not change by me than 0 per mthThat LIBOR, Monthly Belt H. Hind: Use ani Siames with RANDBETWEEN LICRA de LIIDK rate Hint: Part of my metion for this is RANDBETWEEN Press- Labor ALCOOL.Previous Liber Art WOOCOON Res be adjustable rate is calculated as LIDOR plus the speed subject to any or lifetime caps Him: Use the MIN tiposo find the corect adjustable mule His: Natetut the Adjustable Rate subject to a teaser of 1.239 The adjustable nute should only adjust tarmally. Hint: Payments 1-12 ure as the Teaser rate. Payments 13-24 are at the corect Adjustable Rate at the end of Your EOY 1-12) Since you did not put a Wall 20 percent on the home, you will have to pay Private Meetgage Insurance (PMID Determine PMI: (a) PMI is calculated as 75 hasis paints (0.0075 percent of the value of the initial loan amount. b) I'M is paid moothly, some you compute the value in step (a), divide it by 12 to descrise monthly PMI. (e) PMI automatically tensinate when the kun to purchase price ratio reaches 18 percent. d) A bomower can request that PMI terminate when the loan purchase price ratio falls below Mo percent. (e) Asume that you will terminate PM when you have a loan that is 90 percent of your purchase price. ) Step Determine Anaal Takes (a) Fair Market Value of Property Rate of Assessment Assessed Value H: Use the Rate of Assessment in Oktobbela County: 10% ibl. Assessed Value - Applicable Exemptions - Net Tasuble Value Hint: In Oktihbeha County the Maximur Homestead Exemption is a small is is Irrelevant. So, assume no eremption el Net Taable Value *Pleras. Rate for each levying authority Hint: average lewensie in Suarkville is around 145 mills. Hae: The mileage rane is per 1.000 of value. For example, the multiplier fie 145 mills is 0.148 d) Assume that your taxes will increase by 1.2 percent per year. Step 6: Determine Annual Homeowners Insurance (Face Insurance) 1 a) Caleulate an insurance as 30 basis points of the value of the home: 0.005 b) Acame that insurance increases by 1.8 percem per year. Determine Eco Payment (a) Yourthly payment will consist of principal, mereka, maukly PM, and an eww payme. (b) The escrow payment is calculated as the sum of the annual taves and somewearance dided by 12 Step Determine the Stated APR ou the Loan ta) Input member of paines paidat closing as a perdage or the con amour depo - 29 b) Inpur other loan closing costs or fees te) Total Fees by adding the product of the points and the loan amount o the other conclusion of fees dy Campute the APR using IRR where the initial cash low is the loan amount oss the fees, and the storms are the Pell'amics fe) He Don't forget to maine and in your Step Complete die Following Table Buyers Name Property Street Address: Property City State 2 Purchase Price: 250000 Down Payment 25.000 Leu Amount 225.000.00 1 Year Teaser Rule Spread Annual Cap LIBOR A Lance Name LIBOR Minimum TIRRORM LIBOR Monthly Delta Lilesina Cag Ongi Di Ports Paid Other Loan Closeag Costs Fees Total Closing Costs Inisial Medialy P& Payment Meathly PMI PA Amaral Property Tunes ferie umul Hencontre Insurance Year 19 Monthly liscrow Payment Initi Tea Minilly Pin it. APR Assignment 4B: Complex ARM Amortization Schedule Stop Step Nie the same from your Fixed Rate Morgage (FRM) Step 12: Determine Payment of Principal and terest ca Nou will put down to percent in the balance with a IX LIBOR ARMI years with a 28 pund 2239 L-year You will mainthly payment and the current spred 15 LIBOR Rates at loan luar bu ema range from 20. 10. petencer the life of the nextgage BOR not change by me than 0 per mthThat LIBOR, Monthly Belt H. Hind: Use ani Siames with RANDBETWEEN LICRA de LIIDK rate Hint: Part of my metion for this is RANDBETWEEN Press- Labor ALCOOL.Previous Liber Art WOOCOON Res be adjustable rate is calculated as LIDOR plus the speed subject to any or lifetime caps Him: Use the MIN tiposo find the corect adjustable mule His: Natetut the Adjustable Rate subject to a teaser of 1.239 The adjustable nute should only adjust tarmally. Hint: Payments 1-12 ure as the Teaser rate. Payments 13-24 are at the corect Adjustable Rate at the end of Your EOY 1-12) Since you did not put a Wall 20 percent on the home, you will have to pay Private Meetgage Insurance (PMID Determine PMI: (a) PMI is calculated as 75 hasis paints (0.0075 percent of the value of the initial loan amount. b) I'M is paid moothly, some you compute the value in step (a), divide it by 12 to descrise monthly PMI. (e) PMI automatically tensinate when the kun to purchase price ratio reaches 18 percent. d) A bomower can request that PMI terminate when the loan purchase price ratio falls below Mo percent. (e) Asume that you will terminate PM when you have a loan that is 90 percent of your purchase price. ) Step Determine Anaal Takes (a) Fair Market Value of Property Rate of Assessment Assessed Value H: Use the Rate of Assessment in Oktobbela County: 10% ibl. Assessed Value - Applicable Exemptions - Net Tasuble Value Hint: In Oktihbeha County the Maximur Homestead Exemption is a small is is Irrelevant. So, assume no eremption el Net Taable Value *Pleras. Rate for each levying authority Hint: average lewensie in Suarkville is around 145 mills. Hae: The mileage rane is per 1.000 of value. For example, the multiplier fie 145 mills is 0.148 d) Assume that your taxes will increase by 1.2 percent per year. Step 6: Determine Annual Homeowners Insurance (Face Insurance) 1 a) Caleulate an insurance as 30 basis points of the value of the home: 0.005 b) Acame that insurance increases by 1.8 percem per year. Determine Eco Payment (a) Yourthly payment will consist of principal, mereka, maukly PM, and an eww payme. (b) The escrow payment is calculated as the sum of the annual taves and somewearance dided by 12 Step Determine the Stated APR ou the Loan ta) Input member of paines paidat closing as a perdage or the con amour depo - 29 b) Inpur other loan closing costs or fees te) Total Fees by adding the product of the points and the loan amount o the other conclusion of fees dy Campute the APR using IRR where the initial cash low is the loan amount oss the fees, and the storms are the Pell'amics fe) He Don't forget to maine and in your Step Complete die Following Table Buyers Name Property Street Address: Property City State 2 Purchase Price: 250000 Down Payment 25.000 Leu Amount 225.000.00 1 Year Teaser Rule Spread Annual Cap LIBOR A Lance Name LIBOR Minimum TIRRORM LIBOR Monthly Delta Lilesina Cag Ongi Di Ports Paid Other Loan Closeag Costs Fees Total Closing Costs Inisial Medialy P& Payment Meathly PMI PA Amaral Property Tunes ferie umul Hencontre Insurance Year 19 Monthly liscrow Payment Initi Tea Minilly Pin it. APR