Tim wants to buy an apartment that costs $$1,750,000$ with an $85\%$ LTV mortgage. Tim got a

$30$ year, $3/1$ ARM with an initial teaser rate of $3\mathrm{.}75\%.$ The reset margin on the loan is $300$ basis

points above $1$ year CMT$.$ There are no caps. The index was $1\%$ at the time of origination. Tim

also had to pay $6\mathrm{.}5$ points for this loan.

Compute the true APR $($annualized IRR$)$ for this loan.