Question

A borrower takes out a 30-year adjustable rate mortgage loan for $500,000 with monthly payments. The first year of the loan has a “teaser” rate of 3%, after that, the rate can reset with a 7% annual payment cap. On the reset date, the composite rate is 5%. What would be the Year 2 monthly payment be?

Please show how to solve using a financial calculator.

Answer #1

Calculate the monthly payments as follows:

Therefore, year 2 monthly payment is
**$2,667.42**.

Formulas:

a. Formulas of financial calculator:

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b.

--------------------------------------------------------------------------------------------------c.

A borrower takes out a 25-year adjustable rate mortgage loan for
$540,000 with monthly payments. The first 5 years of the loan have
a “teaser” rate of 4%, after that, the rate can reset with a 3%
annual rate cap. On the reset date, the composite rate is 6%. What
would the Year 6 (after 5 years; 20 years left) monthly payment
be?
Group of answer choices
A) $3,369.84
B) $3,407.02
C) none of the answers is correct
D) $3,235.05...

Gilbert takes out a 23-year adjustable rate mortgage loan for
$6,000,000 with monthly payments. The first two years of the loan
have a “teaser” rate of 2%, after that, the rate can reset with a
2% annual rate cap. On the reset date, if the composite rate is 7%,
what would the Year 3 monthly payment be?
a) $31,467.8 b) $32,768.6 c) $35,812.3 d) $42,327.9

A customer would like to take out a 25-year adjustable rate
mortgage loan for $260,000 with monthly payments. The first two
years of the loan have a “teaser” rate of 4%, after that, the rate
can reset with a 2% annual rate cap. On the reset date, the
composite rate is 6%. What would the Year 3 monthly payment be?
$955
$1,567
$1,655
$1,586
Because of the rate cap, the payment would not change.

a borrower takes out a 30 year mortgage loan for $361,923 with
an interest rate of 6% and monthly payments. What portion (dollar
amount) of the first months payment would be applied to
interest

What are the monthly payments on a $500,000 30-year mortgage
loan that has an interest rate of 5.79% EAR? Please answer using a
financial calculator.

A borrower takes out a 20-year mortgage for $500,000 with an
interest rate of 6%. The loan requires monthly payments and has a
3% fee if the loan is repaid within 10 years. What is the effective
interest rate on the loan if the borrower repays the loan after 72
payments?

A 30-year, $200,000 adjustable-rate mortgage starts out with the
rate of 4%. The borrower makes only the required payments in the
first year. If after one year the rate resets to 5.8%, what is the
new required payment?

A 30-year, $200,000 adjustable-rate mortgage starts out with the
rate of 4%. The borrower makes only the required payments in the
first year. If after one year the rate resets to 5.1%, what is the
new required payment?

A borrower with a negative amortization adjustable
rate mortgage has a loan balance of $98,000 and 29 years remaining
in the loan. The current capped payment is $500, however
the accrual rate is 6.5%. What will be the loan balance after
twelve months?
(Show work with financial calculator strokes)

a borrower takes out a 15 year mortgage loan for 100,000 with an
interest rate of 5% plus 3 points. what is the effective annual
interest rate on the loan if the loan is carried 7 years.

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