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Determining the maximum lifetime cap

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How much interest would be paid on a five-year adjustable mortgage that is interest only. The principal amount is 300,000. The teaser rate is 1.5 percent. The index for the rate adjustments are as follows: 3%,4.5%, 6%,8%. The margin is 3%. The annual cap is 2% and the maximum lifetime cap is 8%.

Reference no: EM132679167

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