Floating rate. How much interest is paid over 5 years on an $500,000 interest only loan where the margin is 3% the teaser rate is 2% and the adjustment indices are 1.5%, 2.25%, 4.75% and 5.25% for years 2,3,4,5, respectively. There is a 2% annual cap and an 8% lifetime cap.

Location quotient: US has 137,19,900 jobs of which 8,366,600 jobs are in the finance activities. New York City has 4,493,600 total jobs 471,800 in finance activities. What is the location quotient?

Loan Qualification: A couple wants to buy a $500,000 house. Current interest rates are 5% on a 30-year amortizing loan. Taxes are 10,000 and insurance is 2,000 per year. They have a car loan for $300, student loans of $900 and credit cards of $250 per month. They can get a 90% ltv but that would add 0.375% to the rate and add 3,000 to the closing costs for Mortgage Insurance. Or they could just take an 80% ltv loan. What would they need to make to qualify for the two scenarios? The front ratio or housing ratio is 28% and the back ratio or is 43%.