Suppose you are considering an ARM with the following characteristics: Mortgage Amount = $ 350,000 Initial Contract Rate = 5.50% Interest Rate Caps = 2/6 Margin 2.50 Index 1-year TB Yield with a value at the outset of 5.25% Index value at the end of year one and constant for the remaining term = 6.50% Discount Points = 2 Term 30 years Monthly Payments What is the APR for this loan?

Suppose you are considering an ARM with the following characteristics: Mortgage Amount = $ 350,000 Initial Contract Rate = 5.50% Interest Rate Caps = 2/6 Margin 2.50 Index 1-year TB Yield with a value at the outset of 5.25% Index value at the end of year one and constant for the remaining term = 6.50% Discount Points = 2 Term 30 years Monthly Payments What is the APR for this loan?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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