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Assume a 1/1 ARM without cap. Term =15 years. Initial loan balance =$10,000. The starting teaser rate =3%, margin =2%. - Periodic adjustment cap =2%
Assume a 1/1 ARM without cap. Term =15 years. Initial loan balance =$10,000. The starting teaser rate =3%, margin =2%. - Periodic adjustment cap =2% - Lifetime cap rate =12% - Lifetime floor rate=3\% What is the mortgage rate in Year 2? 3% 5% 13.50% 7% 1 point Q30-Q32 are based on the same assumptions as follows: Assume a 1/1 ARM without cap. Term =15 years. Initial loan balance =$10,000. The starting teaser rate =3%, margin =2%. - Periodic adjustment cap =2% - Lifetime cap rate =12% - Lifetime floor rate =3% What is the beginning balance of the mortgage at the beginning of Year 2? $9,974.94
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