1. David is looking to buy a home for $1,000,000. The bank is offering him a 15-year fixed rate fully amortizing mortgage at a 4.00% interest rate with 75% LTV. If David accepts these conditions, what will be his total monthly mortgage payments?

4 points

QUESTION 13

1. David is looking to buy a home for $1,000,000. The bank is offering him a 15-year fixed rate fully amortizing mortgage at a 4.00% interest rate with 75% LTV. If David accepts these conditions, what will be his remaining loan balance at the end of 5 years / at the beginning of the 6th year?

4 points

QUESTION 14

1. David takes out a 15-year 5/1 Hybrid ARM for $600,000 with an initial interest rate of 3.5%. The interest rate will adjust according to the 1 yr LIBOR rate, plus a margin of 3%. At the first reset date, 1 yr LIBOR is at 1%. What will be his monthly payment be immediately after the first reset? (State the payment as a positive number.