you have a choice between a 30-year fixed rate loan 6.5% and an adjustment rate mortgage arm with a first rate of 4% neglecting compounding and charges in principle estimate your monthly savings with the arm doing the first year on a $300,000 loan suppose that the arm rate raises to 7.5% after start of the 3rd year approximately how much extra will you being be paying over what you would have paid if you had taken the fixed rate loan what is approx monthly savings with the arm doing the first year