You work for a nationally charter bank and have been asked to project adjustable rate mortgage (ARM) payments over the life of a loan. Below is the loans information: 15 year loan Use the interest rates calculated in HW #3 $2,500,000 Property Value 80% LTV No Points No Fees You must calculate the following in an Excel file, then submit it on Canvas by the due date. 1) OLB (Beginning) for each month. 2) Payment (PMT) for each month. 3) Interest (INT) for each month. 4) Principal (PRIN) for each month. 5) OLB ( End) for each month.

Use the interest rates calculated in HW #3

Loan		Stripped T-Bond Price	Forecasted		Index	Max	Max		Contract
Year	Year	Dollars	Int Rate		Forecast	Periodic Cap	Life Cap	Index + margin	Rate
1	2014	100.000	0.13%		2.13%			4.63%	3.00%
2	2015	99.873	0.53%		2.53%	6.63%	9.63%	5.03%	5.03%
3	2016	99.348	2.18%		4.18%	7.03%	9.63%	6.68%	6.68%
4	2017	97.231	0.01%		2.01%	4.68%	9.63%	4.51%	4.51%
5	2018	97.219	2.61%		4.61%	6.51%	9.63%	7.11%	6.51%
6	2019	94.749	2.39%		4.39%	9.11%	9.63%	6.89%	6.89%
7	2015	92.539	3.71%		5.71%	8.89%	9.63%	8.21%	8.21%
8	2016	89.225	4.11%		6.11%	10.21%	9.63%	8.61%	8.61%
9	2017	85.699	6.18%		8.18%	10.61%	9.63%	10.68%	9.63%
10	2018	80.71	2.33%		4.33%	8.68%	9.63%	6.83%	8.68%
11	2019	78.876	8.92%		10.92%	8.83%	9.63%	13.42%	8.83%
12	2020	72.418	4.74%		6.74%	11.42%	9.63%	9.24%	9.24%
13	2021	69.139	4.68%		6.68%	7.24%	9.63%	9.18%	9.18%
14	2022	66.05	7.13%		9.13%	11.18%	9.63%	11.63%	9.63%
15	2023	61.654	2.43%		4.43%	9.63%	9.63%	6.93%	9.63%