The table shows the specifications of an adjustable-rate mortgage (ARM). Assume no caps apply.

QUESTION:

Find a) the initial monthly payment; b) the monthly payment for the second adjustment; and c) the change in monthly payment at the first adjustment.

*The principal balance at the time of the first-rate adjustment.

$70,000 The table shows the specifications of an adjustable rate mortgage (ARM). Assume no caps apply. Find a) the initial monthly payment; b) the monthly payment for the second adjustment; and c) the change in monthly payment at the first adjustment. *The principal balance at the time of the first rate adjustment. 20 years 7.3% Beginning Balance Term Initial index rate Margin Adjustment period Adjusted index rate *Adjusted balance 2.7% 1 year 8.8% $68,841.62 $70,000 The table shows the specifications of an adjustable rate mortgage (ARM). Assume no caps apply. Find a) the initial monthly payment; b) the monthly payment for the second adjustment; and c) the change in monthly payment at the first adjustment. *The principal balance at the time of the first rate adjustment. 20 years 7.3% Beginning Balance Term Initial index rate Margin Adjustment period Adjusted index rate *Adjusted balance 2.7% 1 year 8.8% $68,841.62