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Order the following mortgages from smallest initial payment to largest initial payment (i.e. payment for month 1 of the loan). Assume in each case the
- Order the following mortgages from smallest initial payment to largest initial payment (i.e. payment for month 1 of the loan). Assume in each case the mortgage is for $200,000:
I. 30 year fully amortizing 5/1 hybrid mortgage, 5% initial rate, margin 1.25%, index at first reset date=5.5%
II. 30 year negatively amortizing mortgage, 5% rate, $250,000 balloon payment due at maturity
III. 15 year fully amortizing fixed rate mortgage, 5% rate
IV. 30 year partially amortizing fixed rate mortgage, 5% rate, $50,000 balloon payment
V. 30 year interest only mortgage, 5% rate
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