Suppose a one-year ARM loan has a margin of 2.75, an initial index of 3.00 percent, a
Question:
Suppose a one-year ARM loan has a margin of 2.75, an initial index of 3.00 percent, a teaser rate for the first year of 4.00 percent, and a cap of 1.00 percent. If the index rate is 3.00 percent at both the beginning and the end of the first year, what will be the interest rate on the loan in year two? If there is more than one possible answer, what does the outcome depend on?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Real Estate Principles A Value Approach
ISBN: 978-0077836368
5th edition
Authors: David C Ling, Wayne Archer
Question Posted: