Calculate the olb-end for each month

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Reference no: EM132059667

You work for an nationally charter bank and have been asked to project adjustable rate mortgage (ARM) payments over the life of a loan. Below is the loan's information:

15 year loan

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%

$2,500,000 Property Value

80% LTV

No Points

No Fees

Calculate the following:

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.

Reference no: EM132059667

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