Question
You have taken out a $225,000, 3/1 ARM. The initial rate of 6.2% (annual) is locked in for 3 years and is expected to increase
You have taken out a $225,000, 3/1 ARM. The initial rate of 6.2% (annual) is locked in for 3 years and is expected to increase to 6.5% at the end of the lock period. Calculate the initial payment on the loan assuming beginning of period. (Note: the term on this 3/1 ARM is 30 years) Show your steps used in Excel.
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The Bank Merger Wave
Authors: Gary Dymski
1st Edition
0765603829, 978-0765603821
