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 $301,000 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 increases by 0.9%, to 5% APR, compounded monthly, what will be your new payments?
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Real Estate Finance Theory And Practice
Authors: Terrence M. Clauretie, G. Stacy Sirmans
5th Edition
0324305508, 9780324305500
