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You have taken out a $320,000, 5/1 ARM. The initial rate of 5.8% (annual rate with monthly compounding) is locked in for five years. Calculate

You have taken out a $320,000, 5/1 ARM. The initial rate of 5.8% (annual rate with monthly compounding) is locked in for five years. Calculate the payment after recasting the loan (i.e., after the reset) assuming the interest rate after the initial lock period is 8.2%. (Note: the term on this 5/1 ARM is 30 years.)

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