Question

12. Assume a $300,000 5/1 ARM has an initial coupon of 2.20% with monthly payments based...

12.

Assume a $300,000 5/1 ARM has an initial coupon of 2.20% with monthly payments based upon a fully amortizing, 30-year loan? What is the new payment assuming the new rate in month 61 is 3.50%?

Group of answer choices

$1,395.00

$1,345.00

$1,375.00

$1,315.00

Homework Answers

Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

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