You wish to purchase a property for $600,000. You intend to make a 20% downpayment and you have the money to do so. You have two mortgage choices. You can finance the remaining 80% with a 30 year fixed rate mortgage at an interest rate of 2.75% with $3000 in closing costs. Alternatively, you can choose a 30 year, 5/1 ARM with an interest rate of 5%. The ARM has closing costs of $7000. The ARM has an annual cap of 1% and a lifetime cap of 5%. Assume a worst case scenario (for you, the borrower) for interest rates throughout. What is the remaining balance on the ARM after 5 years? Multiple Choice $387,367.80 O $600,000 $409,653.10 $378,474.35