In order to invest in a small inn in Val Mastair (CH,GR), an investor contractua CHF 5.6M ARME with 30 year monthly payments and annual interest rate adjustments The teaser rate (Ist year only) is 2% Annual cap is 3%, and lifetime cap is 5,8%. The index for the loan in the LIBOR, and the lont has a margin of 150 hasin points It is expected that the LIBOR will increase by 1.9% on the second year at the end of Year-1), and by another 12% on the third year (at the end of Year-2), Current Yield on Libor is 3,18%. The loan is prepaid in 3 years BEG INDEX MARGIN RATE CONTRACT RATE NPER PMT ARM Annual Schedule Year 1 9 3 Assume the initiatial costs of 1.5 point (for loan issuance), and there is a 2.6% prepayment penalty. PV after borrowing cost adjustments 3rd year Balance after pre payment penalty adjustment EBC (maruming pre payment after 3 years) You can use the pace provided below for your caloulations PV PMTI PMT2 PMTS PATS UMTS Sheet2 Sheets In order to invest in a small inn in Val Mastair (CH,GR), an investor contractua CHF 5.6M ARME with 30 year monthly payments and annual interest rate adjustments The teaser rate (Ist year only) is 2% Annual cap is 3%, and lifetime cap is 5,8%. The index for the loan in the LIBOR, and the lont has a margin of 150 hasin points It is expected that the LIBOR will increase by 1.9% on the second year at the end of Year-1), and by another 12% on the third year (at the end of Year-2), Current Yield on Libor is 3,18%. The loan is prepaid in 3 years BEG INDEX MARGIN RATE CONTRACT RATE NPER PMT ARM Annual Schedule Year 1 9 3 Assume the initiatial costs of 1.5 point (for loan issuance), and there is a 2.6% prepayment penalty. PV after borrowing cost adjustments 3rd year Balance after pre payment penalty adjustment EBC (maruming pre payment after 3 years) You can use the pace provided below for your caloulations PV PMTI PMT2 PMTS PATS UMTS Sheet2 Sheets