Suppose you need to finance $86000 for the purchase of a home, and you're deciding between a conventional 30-year mortgage at 6 percent and an ARM at an initial rate of 4 percent, an annual interest rate cap of 1 percentage point, and a lifetime cap of 5 percentage points. If you choose the ARM, how much less will your monthly mortgage payment be in the first year? $105.03 $515.61 $317.87 $410.58