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Question 2 : Forecasting ARM rates Question ( 3 0 points ) Adjustable - rate mortgage amortized over 3 0 years, with an LTV of
Question : Forecasting ARM rates Question points
Adjustablerate mortgage amortized over years, with an LTV of and a teaser rate. The
margin rate for this loan is and the index rate is Assume the index rate increases to
at the beginning of year Early repayment charges apply within the first years of the loan at of the
outstanding balance. The property you're looking at is priced at $ignore acquisition fees
What is the interest rate on this loan in the following years points:
a Year
b Year
c Year
To fill in the table, calculate the monthly payment and the outstanding loan balance of the ARM at
the beginning of year year and year points
Calculate the repayment charges if the property was sold after years. points
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