Question
Five years ago you took out a 5/1 adjustable rate mortgage and the five-year fixed rate period has just expired, The loan was originally for
Five years ago you took out a 5/1 adjustable rate mortgage and the five-year fixed rate period has just expired, The loan was originally for $249,000 with 360 payments at 4.1% APR, compounded monthly.
a. Now that you have made 60 payments, what is the remaining balance on the loan?
b. If the interest rate increase by 0.9% to 5% APR, compounded monthly, what will be your new payment?
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Innovation And Finance
Authors: Andreas Pyka, Hans-Peter Burghof
1st Edition
0415696852, 978-0415696852
