Tim wants to buy an apartment that costs $750,000 with an 85% LTV mortgage. Tim got a 30 year, 3/1 ARM with an initial teaser rate of 3.75%. The reset margin on the loan is 300 basis points above 1 year CMT. In year 4 , the index resets to 3.50%. What will his new mortgage payment be in year 4 ? (Write the answer as a number rounded to two decimals (e.g. if you get $50,66666, write 50.67) QUESTION 6 Tim buys an apartment that costs $750,000 with an 85% LTV mortgage. Tim got a 30 year, 3/1 ARM with an initial teaser rate of 3.75% and monthly payments. The reset margin on the loan is 300 basis points above 1 year CMT. The index was 1% at the time of origination. Tim also had to pay 3 points for this loan. Suppose the index rate will remain 1% for the life of the loan and Tim holds the mortgage until maturity. Compute the true APR for this loan. (Write the answer as a percent so for example 2.5% should be written as 2.5, not as 0.025.) QUESTION 7 Tim buys an apartment that costs $750,000 with an 85% LTV mortgage. Tim got a 30 year, 3/1 ARM with an initial teaser rate of 3.75% and monthly payments. The reset margin on the loan is 300 basis points above 1 year CMT. The index was 1% at the time of origination. Tim also had to pay 3 points for this loan. Suppose the index rate will remain 1% for the life of the loan and Tim prepays the mortgage in 5 years. Compute the true APR for this loan. (Write the answer as a percent so for example 2.5% should be written as 2.5, not as 0.025 .)