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You are a new loan officer with Alpha Mortgage, and the manager of the loan department has just presented a problem to you. He is

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You are a new loan officer with Alpha Mortgage, and the manager of the loan department has just presented a problem to you. He is unable to complete the APR calculation on an acjustable rate mortgage that a borrower applied for yesterday The loan features initial payments based on a 5 percent rate of interest at loan closing. The current composite rate on the loan is 7 percent Two discount points have been paid by the borrower. Any difference between borrower payments and the interest payment required at the composite rate wil be accrued in the mortgage balance in the form of negative amortization. The mortgage amount desired by the borrower is $66,500 for a 30 -year term. Required: Determine the APR, assuming that the ARM is made with a 2 percent annual and 5 percent over-the-life interest rate cap Note: Do not round intermediate colculations. Round your onswer to 1 decimol ploce. You are a new loan officer with Alpha Mortgage, and the manager of the loan department has just presented a problem to you. He is unable to complete the APR calculation on an acjustable rate mortgage that a borrower applied for yesterday The loan features initial payments based on a 5 percent rate of interest at loan closing. The current composite rate on the loan is 7 percent Two discount points have been paid by the borrower. Any difference between borrower payments and the interest payment required at the composite rate wil be accrued in the mortgage balance in the form of negative amortization. The mortgage amount desired by the borrower is $66,500 for a 30 -year term. Required: Determine the APR, assuming that the ARM is made with a 2 percent annual and 5 percent over-the-life interest rate cap Note: Do not round intermediate colculations. Round your onswer to 1 decimol ploce

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