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You have taken out a $425,000, 3/1 ARM. The initial rate of 5% (annual) is locked in for three years and is expected to increase
You have taken out a $425,000, 3/1 ARM. The initial rate of 5% (annual) is locked in for three years and is expected to increase to 6.75% at the end of the lock period. Calculate the initial payment on the loan. (Note: the term on this 3/1 ARM is 30 years.)
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