Practice Basic Loans

1- Prepare the loan amortization table/schedule from scratch (not the Excel template) for a $300,000, 15-year 5% fixed rate mortgage.

2- Prepare the loan amortization table/schedule from scratch (not the Excel template) for a $300,000, 15-year ARM mortgage with 2% annual cap & 5% life cap; negative amortization allowed. Initial

Payments based on 10% rate of interest.

Composite rate in year 1 = 12%. Composite rate in year 2-15 = 14%.